Why is the crypto market down this week?
The cryptocurrency market has undergone a dramatic drop lately, with the overall market value decreasing by 10% between Aug. 14 and Aug. 23, hitting its lowest point in almost two months at $1.04 trillion. This shift has caused large liquidations on futures contracts, the greatest since the FTX crash in November 2022. Several economic variables have led to this drop. As interest rates have crossed the 5% barrier and inflation stays over the 2% objective, borrowing costs for both households and companies have increased, imposing pressure on consumer spending and economic development. That means less money is available for savings, which might cause individuals to let go of their assets merely to afford monthly obligations. Since inflation predictions for 2024 remain at 3.6% and average hourly wages climbed by 5.5% year-over-year, the quickest pace since 2020, the Federal Reserve is expected to maintain or perhaps hike interest rates in the coming months. Consequently, a high ...