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Bloodbath on Stock Market Causes Crypto Market Meltdown: ADA, SOL and ETH Down 10%

Wed, 04/06/2022 - 13:57
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Arman Shirinyan
Cryptocurrencies that were rallying by 30-40% recently are now losing large part of their value
Bloodbath on Stock Market Causes Crypto Market Meltdown: ADA, SOL and ETH Down 10%
Cover image via stock.adobe.com

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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.

Bitcoin chart
Source: TradingView

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.

Related
Real Ethereum (ETH) Value is $6,000 According to Bloomberg's Valuation

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.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.