Posted on Jun 17, 2022
Why cryptocurrencies have gone from the next hot thing to a full-on meltdown
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https://www.npr.org/2022/06/17/ [login to see] /cryptocurrencies-winter-crash-bitcoin-celcius
The cryptocurrency world is in chaos.
Just months ago, crypto companies were advertising heavily during the Super Bowl after virtual currencies enjoyed a dizzying rally in 2021.
Today, Bitcoin and other cryptos are plunging, and companies such as Coinbase, which runs the largest crypto exchange in the U.S, are announcing layoffs.
"The crypto house is on fire, and everyone is just rushing to the exits because there is a complete loss of confidence in the space," says Ed Moya, a senior markets strategist at financial firm Oanda.
Here's what's going on.
The cryptocurrency world is in chaos.
Just months ago, crypto companies were advertising heavily during the Super Bowl after virtual currencies enjoyed a dizzying rally in 2021.
Today, Bitcoin and other cryptos are plunging, and companies such as Coinbase, which runs the largest crypto exchange in the U.S, are announcing layoffs.
"The crypto house is on fire, and everyone is just rushing to the exits because there is a complete loss of confidence in the space," says Ed Moya, a senior markets strategist at financial firm Oanda.
Here's what's going on.
Why cryptocurrencies have gone from the next hot thing to a full-on meltdown
Posted from npr.org
Investing
Finance
Bitcoin
Posted 2 y ago
Responses: 2
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PO1 William "Chip" Nagel
..."Why are cryptos falling so sharply?
Because they are being hit by the same factors impacting stocks and other assets.
Consumer prices are surging at the fastest annual pace in over four decades, and the Federal Reserve is hiking interest rates aggressively to bring down inflation.
On Thursday, the Fed raised rates by three-quarters of a percentage point and indicated it could raise them again by the same amount at its next meeting in July if needed to cool down prices.
Higher interest rates make borrowing costs more expensive for people and companies, and that's raising concerns about an economic recession.
Stocks have fallen dramatically from records set in January, with the broad S&P 500 index entering a bear market this week (when an index falls 20% or more from its recent high)."...
..."Why are cryptos falling so sharply?
Because they are being hit by the same factors impacting stocks and other assets.
Consumer prices are surging at the fastest annual pace in over four decades, and the Federal Reserve is hiking interest rates aggressively to bring down inflation.
On Thursday, the Fed raised rates by three-quarters of a percentage point and indicated it could raise them again by the same amount at its next meeting in July if needed to cool down prices.
Higher interest rates make borrowing costs more expensive for people and companies, and that's raising concerns about an economic recession.
Stocks have fallen dramatically from records set in January, with the broad S&P 500 index entering a bear market this week (when an index falls 20% or more from its recent high)."...
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