Cryptocurrencies that were rallying by 30-40% recently are now losing large part of their value
Following rumors of a potential rate hike in the future, both stock and cryptocurrency markets are tumbling down as risk-off tendencies spike among investors. In addition to the rapid value drop of major cryptocurrencies, 10-year yields are rising with the potential to break a multi-year downtrend.
Market leaders are bleeding
Cryptocurrencies that were previously leading the altcoin rally are now losing up to 10% in the last hours. Cardano, which gained over 45% during the rally, is currently losing 8% from its value in the last 24 hours.
Solana, a decentralized app development ecosystem, is at a massive 14% loss in the last few days with an approximately 10% loss in the last 24 hours. The coin topped out at $143 and rapidly reversed from there.
The leader of the altcoin market and the second biggest cryptocurrency in the industry, Ethereum, was not the best-performing asset on the market but has still gained over 30% during the most recent run.
As for Bitcoin, the first cryptocurrency is also showing weak performance during the day after losing 4% in the last few hours and trading below $45,000 despite the most recent $230 million BTC purchase by Terra Foundation—which now holds almost $1.5 billion worth of Bitcoin.
Safer options gain popularity
Expectedly, with risk-on tendencies fading out on financial markets, traders turn to safer options like treasury yield that are now rallying and reaching the upper border of the 16-year-old descending channel.
The growing profitability of long-term yields quite often shows the changing shape of the market.