Fed Hawkish comments and concerns about stablecoin regulation are selling off the market
Bullish optimism at the beginning of the week was revived on November 4th after recent comments from Fed chairman Jerome Powell confirmed that the central bank will soon begin easing monetary policy and buying bonds.
These statements appear to have sparked a number of price drops in the crypto markets, and both Bitcoin (BTC) and Ether (ETH) are currently under pressure.
Data from Cointelegraph Markets Pro and TradingView show that BTC’s price action issued a warning when the price fell to $ 60,400 on November 3rd and BTC Currenlty struggled to hold $ 61,000.
Ether also saw a slightly lower price on the day after hitting a new record high of $ 4,664 on Wednesday. At press time, the top altcoin is trading at $ 4,473, down 5%.
According to independent market analyst Rekt Capital, Ether will have to close the week above its previous all-time high of $ 4,460 if it hopes to maintain positive momentum.
$ ETH hit a new all-time high this week
All ETH needs to do to continue this positive dynamic is a week end over the previous ATH (in blue)
– Rekt Capital (@rektcapital) November 4, 2021
Related: Chainlink’s total guaranteed value surpasses $ 75 billion as DeFi continues to climb
Soaring altcoins lose a hit
The BTC and Ether pullback hit the altcoin market hard, pushing the majority of tokens in the top 200 into the red.
Some of the hardest hit tokens are projects that have seen some of the biggest gains in the past few weeks, including a 17.22% drop in SHIB prices and a 38% drop in OriginTrail (TRAC) prices being listed on Coinbase .
Nevertheless, there are still a few bright spots on the market in today’s Red Sea. Authorized AI-powered proof-of-stake protocol Velas (VLX) saw its token gain 30.4% that day and is now trading at $ 0.4341 while Chromia (CHR) rose 26.47% and Amp saw prices rise 20.53%.
The total crypto market cap is $ 2.686 trillion and the dominance of bitcoin is 43%.