The top 10 coins traded in the red on Thursday as the cryptocurrency market continued to be in a state of upheaval. The price of Bitcoin plummeted to its greatest level in nine months over the same week, and a cryptocurrency that marketed itself as a reliable medium of exchange lost its peg.
Specifically, as of today, Cardano (ADA) has declined by 5.16%, Dogecoin (DOGE) has decreased by 6.41%, and Polygon (MATIC) has decreased by 7.08%. Heatmap of cryptocurrency prices.
During the recent rise in value, investors and cryptocurrency aficionados have been keenly monitoring the market. Many have been preparing for a potential price fall. Early this year, the market experienced unheard-of expansion, with Bitcoin reaching a peak.
This apparently occurred after a brief period in which the cryptocurrency ecosystem served as a safe haven during significant bank runs. Yet analysts have pointed the finger at the Fed's failed policy decisions for the failures of companies like Silicon Valley Bank (SVB), Signature, and others.
The Federal Reserve's inability to stop bank runs has been criticized by Cathie Wood, CEO of asset management company ARK Invest. But, a discussion that was published on Twitter on March 16 contained all the cautionary signs.
"The asset/liability duration mismatch – securities earning only 1-2% vs. deposits paying 3-5% – became untenable as deposits started leaving the system. Like SVB, some banks were forced to sell HTM securities, recognizing losses that depleted their equity accounts."
Bitcoin's price has dropped 0.83% in the last day to trade at $24,678. Despite all the uncertainty in the cryptocurrency and finance industries. Ethereum (ETH), the second-largest cryptocurrency, is currently trading at $1,658.53, down 2.73% over the same period.