The crypto sector is going through some of its most trying times. In the past day, the number one crypto asset-Bitcoin (BTC), has tanked by 2%, and the number two coin Ethereum has fared no better and tanked by 3%. When reports last came in, BTC changed hands at $19,100, and ETH values were hovering at $1281. However, the rest of the altcoins face a significant incidence of bearish winter, and values are crashing.
Ripple XRP, which was going strong, was the first casualty and found its values plummeting by 7% in one day. Cardano and Solana’s fortunes are no different; the former fell by 6% while the latter sank by 4%. Despite robust fundamentals, ChainLink is also declining due to uncomplimentary macroeconomic conditions. It is currently trading at $7.22 after falling another 4% in the last 24 hours.
The worst performer is the ETC which was touted to be a significant benefit of the Ethereum Merge software update, which changed the Ethereum platform from Proof of Work to Proof of stake methodology. ETC values have tanked by 11% in the last 24 hours and are trading at $24.
Why Is Crypto Sector Tanking Today
The crypto sector is in limbo due to the ambiguity created by the Federal Reserve. The crypto sector is waiting for the release of the CPI. The CPI, released for August and September, was worse than the forecast, and the crypto sector is apprehensive that the Fed will enforce a 75-bps interest rate hike. However, if the inflation is not contained, the Fed could look at a mega hike of 100 bps. If this happens, it could mean a death knell for the crypto sector.