- The US inflation has reached a high not seen in the last 40 years.
- It is dragging altcoins like SOL and XRP down with it.
- The Bitcoin dominance index went up from 0.5% to 40.1%.
It seems financial hard times are upon us, US inflation has reached a new high unseen since 40 years ago. More pressingly, this inflation is slowly dragging down popular altcoins such as Solana (SOL) and XRP with it.
In fact, experts say that these major altcoins, along with many others, could see even further declines if they continue to lose support. As always the crypto sector will see its highs and lows based on public greed and fear.
Presently, it seems like global inflation could be sparking fear among the public. In detail, the total capitalization of the crypto market sank by 2.8%. Specifically, this means the total price dropped to $2.08 trillion.
However, although altcoins seem to be on the decline, there has been a rise in the Bitcoin dominance index. To put it in numbers, the Bitcoin dominance went from 0.5% to 40.01%. Indeed, this is a significant jump.
Meanwhile, the Bitcoin Fear & Greed Index is currently at 50. This shows that the market is in a neutral position at the moment. Once again, this is a good sign for the crypto market as just a couple of weeks ago, the meter was at ‘fear’ and ‘extreme fear’.
Overall, with the financial market in possible ruin, it looks like more and more investors are slowly looking to the crypto market to save face. Perhaps next week onwards we may see the meter go up to the ‘greed’ position.
At the time of writing, the price of Bitcoin is $43,386, according to CoinGecko. Likewise, the price of SOL is $105.29 and the price of XRP is $0.81. Some experts are predicting a crypto comeback soon. In particular, many said the end of Q1 and the start of Q2 would be very good for the crypto market.
As we head into these times, turbulent as they may be, we may see a very exciting turn of events. Will crypto communities rally in time to meet expert predictions or will collective FUD win out in the end?
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.