Cryptocurrencies: Large Losses Due to Correction ?

The strongest cryptocurrencies, Bitcoin and Ethereum, recorded significant losses on Friday, January 21, 2022, with the crypto market losing almost $ 150 billion in the last hours.

In particular, on Friday morning (Paris time), Bitcoin fell 6.10% to $ 38,868, while earlier, it lost up to 7%.

 The world's most popular cryptocurrency has lost about 40% of its value from its all-time high of $ 69,000 in November 2021.

Ethereum is losing 7.35% at $ 2,857, while I had fallen more than 8% earlier.

According to Coinmarketcap.com, the crypto market has lost $ 147 billion in the last 24 hours.

The main reason for the fall, according to CNBC, is the nervousness that prevails in the international markets for the next moves of the solid central banks.

This was reflected in both the losses recorded by Wall Street on Thursday night and the increased yields on government bonds of the USA throughout the week we are going through.

The US Federal Reserve (Fed) will have to start raising interest rates from their current level close to zero in March and will probably need to raise interest rates at least three times this year to contain inflation.

Analysts predict three rate hikes of 25 basis points this year, and a fourth could be needed if inflation is not controlled.

Investors see an 83% chance that the Fed will raise interest rates, which are still near zero, at its two-day meeting on March 15 and 16, 2022, according to the CME Group FedWatch financial indicators.

Ultimately, this is a necessary correction of the market and a temporary phenomenon; on the other hand, the most pessimistic believe it is the beginning of the bubble that pops and has a name: Cryptocurrencies.

Time will tell what will happen.