Bitcoin (BTC) continued its bearish price action for the third day in a row, with the major cryptocurrency falling to a weekly low of $21,814 today, according to data from CoinMarketCap.
After a short rally, Bitcoin is now changing hands at around $21,785 apiece, down 6.9% on the day despite a 7.69% rise in daily trading volumes.
Bitcoin’s market capitalization has more than halved, from $1.27 trillion last November to less than $417 billion today.
Ethereum, the second-largest cryptocurrency by market cap, also slid to around $1,728, a 6.2% drop in the past 24 hours.
With a current market capitalization of $211.5 billion, ETH is down 64.49% from its all-time high of $4,891 recorded in November, according to data from CoinMarketCap.
Amid the bearish price action, more than $537 million from 156,155 traders have been liquidated in the crypto market in the past 24 hours, data from coin glass.
Bitcoin leads the liquidations with $201.3 million, followed by Ethereum with $132.7 million over the same period.
The vast majority of liquidations of the two major cryptocurrencies came from depleted long positions.
Other cryptocurrencies including Binance Coin (8%), Solana (11.6%), Polygon (11.85%) and avalanche (14.3%), also registered huge losses in the last 24 hours, according to CoinMarketCap.
Bitcoin, Ethereum react to the Fed
The bearish market price action is likely tied to the Fed’s expected rate hike next month and reduced DeFi activity.
As reported by the Wall Street Journal, St. Louis Fed President James Bullard favors a 0.75% rate hike by next month. Mary Daly, president of the San Fransisco Fed, also confirmed a rate hike of 0.50% or 0.75% next month, while reported by Reuters.
Both confirmed that rates could be increased as long as rise in inflation is controlled.
User activity across all DeFi apps on Ethereum has also been negative over the past week, following concerns over the next merge event.
According to data from Dune analysisdecentralized exchange (DEX) volume has dropped 34% in the past 24 hours.
According to data from DéfiLlamathe total value locked (TVL) across all blockchains has fallen by more than 3.75% in the past 24 hours, indicating reduced user interest in DeFi.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.
Stay up to date with crypto news, get daily updates delivered to your inbox.