Shocking! Four Major Cryptocurrency Bearish News and Top 10 Most Valuable Virtual Currencies Ranking Revealed

Shocking! Four Major Cryptocurrency Bearish News and will litecoin reach ,000Top 10 Most Valuable Virtual Currencies Ranking Revealed

In the volatile world of cryptocurrencies, the market is constantly buffeted by a whirlwind of news and trends. Today, we're going to delve into four major bearish news items that are sending ripples through the crypto space, and also take a look at the top 10 most valuable virtual currencies ranking. So, fasten your seatbelts as we navigate through this thrilling landscape!

Four Major Cryptocurrency Bearish News

1. Fed's Hawkish Policy and CPI Pressure

From a macro - economic perspective, the Federal Reserve's interest rate policy and CPI data have long been significant factors influencing the cryptocurrency market. Currently, in an attempt to combat inflation, the Fed has adopted a hawkish monetary policy, continuously raising interest rates. This has made traditional financial markets more appealing, causing funds to flow back from the cryptocurrency market to traditional financial sectors. According to CoinDesk, the rising CPI data has also made investors wary of the economic outlook. As a result, they are more inclined to hold cash or other relatively stable assets rather than the risk - laden cryptocurrencies. For instance, Bitcoin, the leader of the cryptocurrency market, has seen a notable decline in its price due to the Fed's interest - rate hike expectations.

FAQ: Why does the Fed's interest - rate hike lead to a capital outflow from the cryptocurrency market to traditional financial sectors? When the Fed raises interest rates, the yields of traditional currencies like the US dollar increase. Traditional financial market products such as bonds and savings accounts offer higher and more stable returns. In contrast, the cryptocurrency market is fraught with risks and uncertainties. To pursue more stable returns, investors withdraw their funds from the cryptocurrency market and invest in traditional financial sectors.

2. Unfavorable Chain - on Data

Chain - on data serves as a crucial indicator reflecting the dynamics of the cryptocurrency market. Recently, there have been significant changes in the net flow of exchanges. Cross - checked data from Blockchain.com and Etherscan shows that a large amount of cryptocurrencies are flowing out of exchanges. This could indicate a decline in investors' confidence in the market, as they start to transfer their assets to safer havens. Moreover, the movement of whale addresses has also caught the market's attention. Some large - scale cryptocurrency holders have made changes to their holdings, which has added to the market's nervousness.

FAQ: What exactly are whale addresses? Whale addresses refer to the wallets of individuals or entities that hold a large amount of a particular cryptocurrency. Their trading decisions can have a substantial impact on the market price due to the large volume of their transactions.

3. Potential Price Collapse of XRP

A well - known crypto trader, Ali Martinez, recently warned his 133,300 followers on social media about a potentially disastrous technical setup for XRP. He pointed out that XRP seems to be forming a bearish head - and - shoulders pattern on its daily chart. This pattern often signals a loss of momentum for an asset. If the price of XRP breaks below the key support level of $2, it could lead to a significant price collapse, which would not only affect XRP itself but also have a negative impact on the overall cryptocurrency market sentiment.

FAQ: What is the head - and - shoulders pattern? The head - and - shoulders pattern is a technical analysis chart pattern that typically indicates a trend reversal. It consists of three peaks, with the middle peak (the head) being higher than the other two (the shoulders). A break below the support level after the formation of this pattern often signals a downward trend.

4. Bitcoin ETF Net Outflow

Bitcoin has recently witnessed a continuous net outflow from its ETFs for five days. The process of Genesis converting its huge GBTC reserves into cash is also ongoing, which is placing immense pressure on the Bitcoin market. Bitcoin, as the most dominant cryptocurrency, any negative news about it can have a cascading effect on the entire cryptocurrency market, causing investors to become more cautious.

FAQ: What is a Bitcoin ETF? A Bitcoin ETF is an exchange - traded fund that tracks the price of Bitcoin. It allows investors to gain exposure to Bitcoin without having to directly own the cryptocurrency, providing a more regulated and accessible way for institutional and retail investors to invest in Bitcoin.

Top 10 Most Valuable Virtual Currencies Ranking

Although the market is facing bearish news, some cryptocurrencies still maintain their high value. Here is a brief introduction to the top 10 most valuable virtual currencies based on recent market data:

1. Bitcoin (BTC): Bitcoin recently reached a new all - time high, hitting $123,226 at one point and currently trading at $118,547.1, with a 24 - hour gain of 0.13%. It accounts for 59.9% of the total cryptocurrency market capitalization, which has now exceeded $4 trillion.
2. Ethereum (ETH): Ethereum has been in the spotlight recently. On July 17, the global Ethereum contract open interest exceeded $50 billion, reaching a record high of $50.329 billion, with a 24 - hour increase of 8.09%. On July 16, the total net inflow of Ethereum spot ETFs reached a record $727 million. It accounts for 10.8% of the total cryptocurrency market capitalization.
3. XRP: XRP has broken through $3.6, with a market capitalization exceeding $210 billion, becoming the third - largest cryptocurrency by market cap. In South Korea's largest exchange, Upbit, the 24 - hour trading volume of XRP/KRW reached $2.2 billion, accounting for about 33% of the entire platform's trading volume.

FAQ: How is the ranking of virtual currencies determined? The ranking of virtual currencies is mainly determined by their market capitalization, which is calculated by multiplying the current price of the cryptocurrency by its circulating supply. Other factors such as trading volume, technological innovation, and community support also play a role in the overall evaluation.

In conclusion, the cryptocurrency market is a complex and ever - changing ecosystem. The bearish news may bring short - term challenges, but the long - term prospects of some cryptocurrencies still look promising. As always, investors should DYOR (Do Your Own Research) and make informed decisions based on their risk tolerance and investment goals.