Hawkish Fed comments and fears of stablecoin regulation spark market sell-off

Published at: Nov. 4, 2021

The bullish optimism seen earlier in the week was dialed back on Nov. 4 after recent comments from U.S. Federal Reserve Chairman Jerome Powell confirmed that the central bank would soon start to taper its monetary policy of easing and bond buying. 

These statements appear to have kicked off a series of price decreases across the crypto market and both Bitcoin (BTC) and Ether (ETH) are under pressure at the moment.

Data from Cointelegraph Markets Pro and TradingView shows that the price action for BTC flashed a warning when the price briefly dipped to $60,400 on Nov. 3 and currenlty BTC is struggling to hold the $61,000 level.

Ether has also seen its price inch lower over the course of the day after setting a new record high of $4,664 on Wednesday. At the time of writing, the top altcoin is trading at for $4,473, marking a decline of 5%.

According to independent market analyst ‘Rekt Capital’, Ether needs to close the week above its previous all-time high of $4,460 if it hopes to keep its positive momentum going.

$ETH made a new All Time High this weekAll ETH needs to do to continue this positive momentum is Weekly Close above it previous ATH (blue)This way, ETH would be able to flip its old ATH into support in an effort to springboard into Price Discovery again#Crypto #Ethereum pic.twitter.com/0ivLGveetP

— Rekt Capital (@rektcapital) November 4, 2021

Related: Chainlink’s total value secured surpasses $75B as DeFi continues to surge

High flying altcoins take a beating

The pullback in BTC and Ether has hit the altcoin market hard and pushed a majority of the tokens in the top-200 into the red.

Some of the hardest-hit tokens are the projects that have seen some of the biggest gains in recent weeks, including a 17.22% decrease in the price of SHIB and a 38% pullback in the price of OriginTrail (TRAC), which recently spiked to a new record high after being listed on Coinbase.

There are, however, a few bright spots in the market amidst today's sea of red. The AI-powered delegated proof-of-stake protocol Velas (VLX) has seen its token gain 30.4% on the day and now trades at $0.4341, while Chromia (CHR) has gained 26.47% and Amp has saw its price increase by 20.53%.

The overall cryptocurrency market cap now stands at $2.686 trillion and Bitcoin’s dominance rate is 43%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Tags
Bitcoin
Bitcoin Price
Markets
Ethereum
Altcoin Watch
Altcoin
Market Update
Cryptocurrencies
Ether Price
Btc Markets
Federal Reserve
Quantitative Easing
Related Posts
Crypto markets soar after Fed commits to printing and Evergrande plans to pay its debt
The cryptocurrency ecosystem is showing signs of a recovery on Sept. 22 following a 48-hour corrective stint which saw Bitcoin and altcoins sell-off to their swing lows. Equities and crypto investors were clearly worried about the possible bankruptcy of China’s Evergrande real estate firm and many feared that the possible default could spark a global decline in financial markets. These concerns were temporarily put to rest after the real estate firm was able to come to an agreement with bondholders and avoid defaulting on its obligations technically, and this helped to spark a recovery across the cryptocurrency market that lifted …
Bitcoin / Sept. 22, 2021
Bitcoin price corrects after hitting a wall at a multi-month descending trendline
On August 15, Bitcoin (BTC) price and the wider market corrected while the S&P 500 and DOW looked to build on four-straight weeks of robust gains. Data from TradingView and CNBC show the Dow pushing through its 200-day moving average, a first since April 21 and perhaps a sign for bulls that the market has bottomed. While equities markets have been strikingly bullish in the face of high inflation and a steady schedule of interest rate hikes, a number of traders fear that the current 32 day uptrend in the DOW and S&P 500 could be a bear market rally. …
Bitcoin / Aug. 15, 2022
Analyst says Bitcoin could see ‘a smaller drawdown and a quicker bottom'
The cryptocurrency faithful got a reprieve from recent market struggles thanks to a rally in decentralized finance (DeFi) tokens and Dogecoin (DOGE) on June 2. A bit of a breakout in the price of Ether (ETH) and Bitcoin (BTC) may have also lifted sentiment, but at the moment, the top-ranked digital assets are still meeting pushback at key overhead resistance levels. Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin rallied 7.3% from a low of $35,645 on June 1 to an intraday high at $38,250 on June 2, and Ether saw a similar-sized gain of …
Bitcoin / June 2, 2021
20% drop in the S&P 500 puts stocks in a bear market, Bitcoin and altcoins follow
Whoever coined the phrase “sell in May and go away” had brilliant insight, and the performance of crypto and stock markets over the past three weeks has shown that the expression still rings true. May 20 has seen a pan selloff across all asset classes, leaving traders with few options to escape the carnage as inflation concerns and rising interest rates continue to dominate the headlines. Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) taking on water below $29,000, and traders worry that losing this level will ensure a visit to the low $20,000s …
Bitcoin / May 20, 2022
A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming 'buy'
Bitcoin (BTC) price remains pinned below $22,000 as the lingering impact of the Aug. 19 sell-off at $25,200 continues to be felt across the market. According to analysts from on-chain monitoring resource Glassnode, BTC’s tap at the $25,000 level was followed by “distribution” as profit-takers and short-term holders sold as price encountered a trendline resistance following a 23 consecutive day uptrend that saw BTC trading above it’s realized price ($21,700). The firm also noted that the “total inflows and outflows to all exchanges” metric shows exchange flows at multi-year lows and back to “late-2020 levels,” which reflects a “general lack …
Bitcoin / Aug. 23, 2022