This triggered the massive crypto sell-off

Bullish optimism at the beginning of the week returned on November 4th after Fed chairman Jerome Powell confirmed that the central bank would soon start tightening monetary policy and buying bonds.

Also, the US Treasury Department released a report on stablecoins on November 1, essentially calling on Congress to regulate the industry. In short, the working group expects government agencies to meet the same standards of issuers of stablecoins as insured custodians.

Both moves appear to have sparked a number of declines in the crypto market, with both Bitcoin and Ether currently under pressure.

BTC price action briefly fell to $ 60,400 on November 3rd and has maintained its downward momentum today as BTC struggles to hold $ 61,000.

BTC / USDT 1 hour chart. Source: TradingView

Ether also saw a slightly lower price that day after hitting a new record high of $ 4,664 on November 3rd. It is currently trading at $ 4,476, down 3.8% from ATH.

ETH / USDT 1 hour chart. Source: TradingView

According to analyst Rekt Capital, Ether will have to close the week above its all-time high of $ 4,460 in order to maintain its momentum.

“The ETH reached a new ETH this week. All ETH has to do to continue this upward momentum is a weekly close above the previous ATH (in blue). In this way, ETH can turn the old ATH around to provide support, to get back into pricing. “

The source: Twitter

Altcoins in the red area

The BTC and ether pullback hit the altcoin market hard, pushing most tokens in the top 200 into the red.

Daily market performance for cryptocurrencies. Source: Coin360

Some of the hardest hit tokens are projects that have seen the biggest gains in recent weeks, including Shiba Inu (SHIB) up 17.22% and OriginTrail (TRAC) up 38% after skyrocketing to one new record high due to the listing on Coinbase.

However, there are still a few bright spots in the Red Sea today. AI Velas’ decentralized proof-of-stake protocol VLX is up 30.4% over the day and is now trading at $ 0.4341 while Chromia (CHR) is up 26.47% and Amp is down 20 .53% has risen.

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Annie

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