The macro market has been influencing the price of crypto to a much larger degree in the last couple of months compared to a year ago. This is no surprise given that some of these companies, which are heavily involved in the macro market, also extended their investments to cryptocurrencies such as Bitcoin. Hence, when the macro environment affected these companies, crypto was affected. Even now, the influence continues to maintain hold. Losses Flow To Crypto Over the last week, there have been some major happenings in regard to the economy. Fed Chair Jeremy Powell said that as the government tried to get the inflation rate under control, there would be a lot of “pain” coming to the market. The market had taken such grim forecasts and ran with them, triggering massive losses across the stock market. Related Reading: Majority Of Ethereum Investors Maintain Profitability Despite Decline Below $1,700 By the end of Sunday, the stock market had recorded $1.25 trillion in losses. For comparison, this number is much larger than the entire crypto market cap. The effects of Powell’s speech would continue to be felt, with the Nasdaq losing 4% and the S&P losing 3.3%. Total market cap below $950 billion | Source: Crypto Total Market Cap on TradingView.com The spillover from the losses was quickly felt in the crypto market. Crypto make losses had come to about $100 billion total in the same time period, dragging it down below the ...
