Cryptocurrencies after a brief relief post the Fed rate hike on expected lines are again under pressure. Though at the time of writing this copy, the largest token has pared its early losses and last at around 3:00 pm (IST) was trading lower by a tad of 0.66% at $21,040. Also, other cryptos by and large showing a mixed trend.
From among the Coindesk compiled list of top 20 assets, while most of down with losses up to 4% as for Polkadot, the ones seen gaining include Loopring, Decentraland, ShibaInu, Dogecoin, Stellar, Cardano, Ripple and stablecoins.
Bitcoin-the most famous and largest crypto by m-cap has lost sharply from the all time highs of $69K scaled in November last year.
Notably the gains made in cryptos after the Fed rate hike have reverted to levels before the outcome announcement.
But this likely isn't the bottom yet, said Apifiny CEO Haohan Xu in a Coindesk report given the lack of bullish sentiment and worsening liquidity.
The global crypto market cap is still maintained below $1 trillion and last was down by over 1% at $905.08 billion.
Where is bitcoin headed to?
The levels close to $20K signify that there can be triggered large scaled liquidations. "With the rate hike, we will actually see decreasing yield in the crypto space across all assets," XU said in a note. "Borrowing has been very important for anyone participating in the crypto market, whether it's traders trying to profit from contango or market makers trying to arbitrage across exchanges."