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

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The Federal Reserve’s hawkish comments on interest rates and fears of regulation sparked a sell-off in the cryptocurrency markets. The bearish news came after weeks of green for crypto, leading analysts to suggest that short term investors were cashing out before it hits

The “list of stablecoins 2021” is a list of cryptocurrencies that are pegged to the US dollar. The list includes Dash, Stellar, and Tether.

On Nov. 4, the bullish euphoria seen earlier in the week was scaled down as remarks from US Federal Reserve Chairman Jerome Powell revealed that the central bank will soon begin to reduce its monetary policy of easing and bond buying. 

These comments seem to have triggered a wave of price drops throughout the crypto market, with Bitcoin (BTC) and Ether (ETH) now under pressure.

The price action for BTC flashed a caution when it momentarily sank below $60,400 on Nov. 3, according to data from Cointelegraph Markets Pro and TradingView, and BTC is now battling to retain the $61,000 mark.

Hawkish Fed comments and fears of stablecoin regulation spark market sell-off4-hour chart of BTC/USDT. TradingView is the source of this information.

After achieving a new record high of $4,664 on Wednesday, the price of Ether has dipped somewhat during the course of the day. At the time of writing, the top altcoin is selling at $4,473, down 5% from its previous high.

Hawkish Fed comments and fears of stablecoin regulation spark market sell-off4-hour chart of ETH/USDT. TradingView is the source of this information.

If Ether is to maintain its bullish trend, independent market analyst ‘Rekt Capital’ believes it has to complete the week above its previous all-time high of $4,460.

This week, $ETH hit a new all-time high.

All ETH has to accomplish now is close above its prior ATH on a weekly basis to maintain its current momentum (blue)

This manner, ETH might convert its former ATH to support in order to re-enter the Price Discovery market. #Ethereum #Crypto pic.twitter.com/0ivLGveetP

November 4, 2021 — Rekt Capital (@rektcapital)

As DeFi continues to grow, Chainlink’s total value secured has surpassed $75 billion.

Altcoins that are soaring high suffer a hammering.

The decline in BTC and Ether has wreaked havoc on the altcoin market, sending the majority of the top-200 coins into negative territory.

Hawkish Fed comments and fears of stablecoin regulation spark market sell-offPerformance of the bitcoin market on a daily basis. Coin360 is the source of this information.

Some of the hardest-hit tokens include those that have witnessed some of the largest increases in recent weeks, such as SHIB, which has down 17.22%, and OriginTrail (TRAC), which just rocketed to a new record high after being listed on Coinbase, which has dropped 38%.

In today’s sea of red, however, there are a few bright spots in the market. Velas (VLX), an AI-powered delegated proof-of-stake protocol, has risen 30.4 percent on the day and currently trades at $0.4341, while Chromia (CHR) has increased by 26.47 percent and Amp has increased by 20.53 percent.

The total cryptocurrency market capitalization is currently $2.686 trillion, with Bitcoin holding a 43 percent market share.

The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.

The “fed paper stablecoins” is a comment from the Federal Reserve Chairman Jerome Powell that sparked fear in the market. The comments caused a sell-off for the cryptocurrency market.

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About the author

Emilia James
By Emilia James

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