Thursday was a sea of red in the altcoin sector, as the Crypto Fear and Greed Index slipped to neutral. The zkSync (ZK) token traded at $0.2175, down more than 32% from its high point this week.
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zkSync, Notcoin and Bitgert are crashing
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Notcoin, Telegram’s popular tap-to-earn coin, traded at $0.015, down nearly 30% from its high point this month. Bitgert BRISE has fallen to $0.0000013 and is near its lowest point since November last year.
Other altcoins such as JasmyCoin, Athena, Lido DAO and Solana were also deep in the red on Thursday. This decline is mainly due to investors becoming a little fearful after Bitcoin formed a double-top pattern at $72,000 last week. The Cryptocurrency Fear and Greed Index plummeted to 52.
In most cases, a double top pattern is one of the most bearish signals in the market, which explains why the coin dropped to around $65,000 today. Most altcoins usually track the price of Bitcoin.
These tokens have also collapsed because the cryptocurrency sector lacks a clear catalyst for the future. The SEC has already approved spot Bitcoin ETFs while the Bitcoin halving has already occurred. It recently demonstrated that it will give a green light to Ethereum ETFs.
Bitcoin ETFs have performed well this year, with their total assets jumping to over $60 billion. Recently, however, assets have suffered outflows, perhaps as investors have turned to booming US stocks.
The Fed has become aggressive
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Meanwhile, on the macro side, the Federal Reserve has insisted that it will not rush to cut interest rates. In its monetary policy decision, the bank left interest rates unchanged and hinted that it will be patient due to high inflation.
At the same time, there are signs that interest in the cryptocurrency sector has waned in recent months. As shown below, data from CoinMarketCap shows that the daily volume of coins traded on exchanges has plummeted since peaking in March. Open interest in the futures market is also not increasing.
Meanwhile, Tether, the most popular stablecoin in the sector, is no longer growing. Its market capitalization has remained at $122 billion in recent weeks. Watching Tether flows is important because it is used in most crypto transactions.
This article was translated from English with the help of AI tools, and subsequently proofread by a local translator.
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