The crypto market was eventful on Tuesday as the world’s largest cryptocurrency, Bitcoin, stayed above $21,000 after threatening a plunge the day before. However, most cryptocurrencies have fared worse, including Solana and Shiba Inu. The Economic Times reports that significant tokens in the crypto market have shown a 20% decline during the last seven days. The bearish market scenario is an aftereffect of the Fed’s policies to counter inflation and other economic factors. Investors might witness the market’s downfall again if the present situation persists. The US FOMC indicates the continuation of the current inflation prescription of 75-basis point and the increase in interest rates.
Solana and Shiba Inu topped the bearish chart
Amid the critical market scenario, cryptocurrencies, including Solana and Shiba Inu, suffered a rough day. The Economic Times reports that Solana’s price decreased the most, while Shiba Inu remained second with a 2% price decrease. However, Cardani and Ethereum showed minor gains after a bearish streak. Reports indicate the global cryptocurrency market cap is slightly above $1.02 trillion, with no improvement during the last 24 hours. The total trading volume witnessed an 18% rise to $70.62 billion. The high global inflation rate and the slow economic progress have negatively influenced the crypto market, and the investors have suffered substantial financial losses this year.
What’s next for cryptocurrency
The crypto market has revealed its true colors of volatility and unpredictability. However, it has shown signs of recovery and has given investors hopes for a better future. Various crypto giants, including Bitcoin and Ethereum, have consolidated to a marginal extent after the crypto crash in June. However, the market remains a long way off from its peak; investors must be patient and invest wisely to enjoy returns in the long run. The crypto market shows enormous promise, and major tech companies have recently introduced cryptocurrencies in different fields.