Here's Why Bitcoin, Ethereum, and Dogecoin Plunged This Weekend

The sell-off in the criptocurrency market started on Friday and hit a peak early on Saturday as investors try to digest a number of macro news items that could impact all markets around the world. The Federal Reserve could call an emergency meeting on Monday due to rising tension between Russia and Ukraine.
At 1:40 p.m. In the last 24 hours, it was down 1.1%, but it had fallen as much as 3.4% earlier in the day. The price of ether was down 3.5% but fell as much as 6.7% in 24 hours, with a 13% gap from its Thursday peak to its Saturday low. Dogecoin is down 3.4% in the last 24 hours, but it was down 17% from its peak earlier in the week.
The image is from the same source.

So what?

Tensions between Russia, Ukraine, and the U.S. were the biggest concern for investors and the stock market late on Friday. Russia has been placing troops near the border and the concern is that an invitation will lead to a larger conflict with the U.S. and Europe. The market is down because of uncertainty around the situation, which will cause investors to sell riskier assets.

The Federal Reserve will hold an emergency meeting on Monday to discuss interest rates after a 40-year high inflation rate. According to the market's reaction, investors are expecting a short-term rate hike as early as Monday in order to contain inflation. Lower-risk assets like bonds would be more attractive to investors if rates went up.
Higher rates aren't a surprise, but investors may have thought increases were coming later in the year. It seems like the Federal Reserve is going to push up the time frame before inflation gets out of control.
What now?

The last day and a half has been a macro market move rather than anything to be concerned about for any of the cryptocurrencies. As they are highly volatile assets, it's not surprising that these digital coins magnified the stock market's move lower on Friday.
I wouldn't be surprised to see volatility continue over the next few weeks as well as investors digest inflation, earnings, and interest rate information. Payment systems and NFTs are signs of growth for the industry and should be watched by investors. That's where the future is for cryptocurrencies and days like today could be buying opportunities for long-term investors.
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Hoium is the owner of ether. The Motley Fool is a fan of bothcryptocurrencies. There is a disclosure policy at The Motley Fool.

Hoium is the owner of ether. The Motley Fool is a fan of bothcryptocurrencies. There is a disclosure policy for The Motley Fool.

Source: www.fool.com