Cryptocurrencies that were rallying by 30-40% recently are now losing large part of their value
Following rumors of a possible rate hike in the future, equity and cryptocurrency markets are crashing as risk aversion tendencies rise among investors. In addition to the rapid fall in value of major cryptocurrencies, 10-year yields are rising with the potential to break a multi-year downtrend.
Market leaders are bleeding
Cryptocurrencies that were previously leading the altcoin rally are now losing up to 10% in the last hours. Cardano, which gained over 45% during the rally, is currently losing 8% from its value in the last 24 hours.
Solana, a decentralized app development ecosystem, suffered a massive loss of 14% in the past few days, with a loss of around 10% in the last 24 hours. The coin peaked at $143 and quickly reversed from there.
The leader of the altcoin market and the second biggest cryptocurrency in the industry, Ethereum, was not the best-performing asset on the market but has still gained over 30% during the most recent run.
When it comes to Bitcoin, the top cryptocurrency is also showing weak performance during the day after losing 4% in the past few hours and trading below $45,000 despite last buying $230 million. dollars worth of BTC by Terra Foundation, which now holds nearly $1.5 billion worth of Bitcoin.
Safer options gain popularity
Expectedly, with risk-on tendencies fading out on financial markets, traders turn to safer options like treasury yield that are now rallying and reaching the upper border of the 16-year-old descending channel.
The increasing profitability of long-term returns often shows the evolution of the market.
