The cryptocurrency market is in the red

The cryptocurrency market is in the red

The Fed increased interest rates, the situation on the Ukrainian border combined with the news that the NFT OpenSea exchange was hacked are the factors that have caused the cryptocurrency market to fail to recover.

According to data from TradingView, Bitcoin (BTC) failed to hold steady in the price zone $40,000 important. Noon on February 21 in Vietnamese time, Bitcoin traded in the price zone 38,900 USD. Overall, Bitcoin is still hovering around the February lows.

Other platform coins like Ethereum (ETH), Avalanche (AVAX), Binance (BNB) are also following Bitcoin. According to TradingView data, since the moment signs of escalation in Ukraine began on Feb. 17, the declines are 14%, 15.5%, and 8.3%, respectively. Market capitalization “evaporated” 200 billion dollars.

The tense military and diplomatic situation between the US and Russia in the border region with Ukraine worried investors and took profits. Safe-haven assets like oil have surged ninety three USD a barrel or price range 1900 USD for gold, according to Forbes.

The fact that the US Federal Reserve (Fed) began to release information about its rate hike plan after a closed meeting on the evening of February 14 also caused volatility in the market. According to the Financial Times, two Fed board members said they would raise interest rates in early March to fight inflation.

Macro reasons are causing many investors to “close their trade orders to reduce risk,” said Bitbull Mutual Fund CEO Joe DiPasquale.

In addition to the Fed’s decision and the situation in Ukraine, the price slide was partly due to bad news from the non-fungible token exchange (NFT). OpenSea, the world’s largest NFT exchange, has just announced a hacking attack.

Alex Svanevik, CEO Data site Nansen said at least 19 users with a crypto wallet link to OpenSea were affected by the hack.

“We believe this is a phishing attack,” said Devin Finzer, CEO This is what OpenSea Floor wrote on Twitter.

Total damage from this attack, estimated at 3 million dollars, including famous NFTs like the Bored Ape monkey collection, according to Forbes. According to data from Etherscan, a transaction tracking website on the ETH blockchain network, the hacker’s account in this case has been used in many other OpenSea attacks in the past.

Mr. DiPasquale told CoinDesk that Bitcoin could fall into the price zone 35,000 won USD.

Amid a market in free fall, Ethereum founder Vitalik Buterin told Bloomberg that he wouldn’t be “surprised” if a “crypto winter” really happened.

“Those who have been involved with cryptocurrencies for a long time, especially blockchain project programmers, are looking forward to the winter period,” Vitalik shared.

Vitalik once appeared in an interview with CNN in late May 2021. In conversation with CNN, Vitalik suggested that “the crypto bubble may have burst.” The cryptocurrency market continued to decline over the next two months.

Other prominent figures in the cryptocurrency market also agree with the head of the Ethereum project. Du Jun, founder of the Huobi exchange, said that the market is entering the “winter” phase.

“If the 4-year halving cycle continues like 2012, 2016. We are in the early stages of ‘winter’. Perhaps the market will start growing strongly again from late 2024 or early 2025,” Du Jun shared with CNBC.

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