THELOGICALINDIAN - Fear is acutely aerial in the crypto markets today
Many accepted Layer 1 projects in the top 100 are bottomward today amidst an all-embracing bazaar selloff. While the account is unclear, accessible factors accommodate a new Covid variant, fears over Chinese debt obligations, and ambiguity apropos the Federal Reserve’s affairs for band purchases.
Crypto Markets Shaken
Several Layer 1 protocols accept suffered losses during a added selloff that has annoyed crypto markets over the weekend.
The big losers of the anniversary are Cosmos, Fantom, Elrond, and Harmony. At the time of writing, Cosmos’s ATOM was bottomward 15% on the week, Fantom’s FTM was bottomward 29%, Elrond’s was EGLD bottomward 31%, and Harmony’s ONE was bottomward 35%.
While abounding bill are bottomward 15 to 30% on the week, the notable barring is Terra’s LUNA. LUNA is up about 19% on the anniversary admitting its 6.5% alteration today. Furthermore, much of the bazaar seems to be bleeding adjoin ETH, which is currently captivation aloft $4,000 admitting an all-embracing bead of almost 4% on the week.
It is not aloof Layer 1 protocols that accept suffered the accomplished few days. Even Metaverse tokens like MANA and SAND, which accept been assuming quite well recently, are anniversary bottomward almost 27% over the accomplished week, and the absolute cryptocurrency bazaar cap has collapsed to $2.25 abundance from about $3 abundance in November. The frequently cited Fear and Greed Index places current sentiment at an “Extreme Fear” akin of 16 (out of 100), bottomward beneath aftermost week’s appraisement of 33. Aftermost month, the indicator showed a acquisitive bazaar at 71.
While abounding may be abashed by the accompaniment of the accepted cycle, it appears that there are abounding accessible non-cryptocurrency-specific affidavit for the abhorrence in the market. In contempo months, abrogating crypto-specific catalysts, such as regulatory concerns, accept seemed decidedly pertinent; however, the accepted declivity may accept added to do with added externalities basic from alfresco of the crypto amplitude itself.
While affidavit for the selloff abide uncertain, acceptable contenders could be abhorrence surrounding the new Omicron Covid variant, as able-bodied as renewed ambiguity surrounding China’s massive absolute acreage developer Evergrande. There additionally appears to be uncertainty apropos the Federal Reserve’s timeline for cone-shaped its band purchases.
Disclosure: At the time of writing, the columnist of this allotment captivated ETH, LUNA, and several added cryptocurrencies.
