After recent comments by Jerome Powell, Chairman of the U.S. Federal Reserve, the bullish optimism that had been evident earlier in the week was tempered on Nov. 4, when it became clear that the central bank would soon begin to reduce its monetary policy which includes bond buying and easing.
These statements seem to have triggered a series price drops across the crypto market, and both Bitcoin (BTC), and Ether (ETH), are under pressure right now.
Cointelegraph Markets Pro and TradingView data show that BTC’s price action flashed warning signs when it dropped to $60,400 Nov. 3. BTC is currently struggling to hold at $61,000.
Chart for BTC/USDT 4 hours TradingView
Ether’s price has fallen over the course the day, after hitting a record high of $4664 on Wednesday. The top altcoin trades at $4,473, a decrease of 5%, as of the time of writing.
Chart for 4 hours ETH/USDT Source: TradingView
Independent market analyst “Rekt Capital” says Ether must close the week higher than its previous record of $4,460 to maintain its positive momentum.
$ETH made a new All Time High this week All ETH needs to do to continue this positive momentum is Weekly Close above it previous ATH (blue) This way, ETH would be able to flip its old ATH into support in an effort to springboard into Price Discovery again#Crypto #Ethereum pic.twitter.com/0ivLGveetP
— Rekt Capital (@rektcapital) November 4, 2021
Related: Chainlink’s total secured value exceeds $75B, as DeFi continues its surge
Altcoins that are high-flying take a beating
The altcoin market has been hit hard by the pullback in Ether and BTC, which has pushed most of the top 200 tokens into the red.
Everyday cryptocurrency market performance. Source: Coin360
The most difficult-hit tokens include the ones that saw the largest gains in recent weeks. These include a 17.22% drop in SHIB’s price and a 38% pullback at OriginTrail (TRAC), whose price jumped to a new record after it was listed on Coinbase.
There are a few bright spots on the market today, though. The AI-powered delegated proof of stake protocol Velas has seen its token trade at $0.4341. Chromia (CHR), on the other hand, has gained 26.47%. Amp’s price has increased by 20.53%.
The total cryptocurrency market is now worth $2.686 trillion. Bitcoin is the dominant currency at 43%.
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Eileen Wilson –Technology and Energy
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