Share this article
Ether, ADA Lead Steep Crypto Slide Amid Dollar Strength
Some analysts said impending monetary tightening could add to a global rout across major asset classes such as equities and crypto.
Updated May 11, 2023, 5:26 p.m. Published Sep 7, 2022, 8:29 a.m.
Make us preferred on Google
Cryptocurrencies snapped an almost weeklong run above resistance levels as a strengthening dollar sent global equity and currency markets into declines.
Ether and Cardano's ADA have both dropped almost 9% in the past 24 hours, giving up a week's worth of gains to become the biggest decliners among major cryptocurrencies. Ether's slide came despite the activation of the Bellatrix upgrade – the Ethereum network's final "hard fork" before the Merge – on Tuesday.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Bitcoin fell 5.5%, trading under $18,900 in early European hours. BNB and Solana’s SOL fell 5%; XRP dropped 4% and Polkadot’s DOT lost 7%. Futures tracking major tokens racked up $327 million in liquidations, while the total cryptocurrency market capitalization slid below $1 trillion for the first time since July.
Losses on meme coins and shiba inu averaged 6%. Outside of the majors, Ethereum Classic’s ETC fell some 16% after a double-digit rally on Tuesday, with Terra’s old luna classic (LUNC) tokens seeing a 20% slide after more than doubling over the past week.
Concerns about aggressive U.S. Federal Reserve monetary tightening were heightened when the dollar climbed overnight, hitting a 24-year high against the Japanese yen and setting a lifetime peak against the Indian rupee. The S&P 500 lost 0.4% and the Nasdaq 100 0.7% on Tuesday as tech stocks slid.
In a note Wednesday, analysts at Arcane Research warned of increased volatility in the coming days after the U.S. Consumer Price Index (CPI) data for August is released on Sept. 13. Also, the European Central Bank will make its interest rate decision on Thursday. The ECB is forecast to hike rates by 75 basis points. One basis point is a hundredth of a percentage point.
“These macro events, combined with the Merge, might be catalysts for going forward,” the analysts said, adding traders remained bullish on ether ahead of the Ethereum blockchain's Merge event.
As for bitcoin, the Fed’s expected tightening presented a “bad outlook,” according to Chris Esparza, founder of decentralized finance (DeFi) protocol Vault Finance.
“Tightening generally reduces the printing of cash to prop up the economy as we had in the COVID-19 pandemic years,” Esparza said. Bitcoin investors must focus on the fundamentals of the asset instead of relying on macroeconomic market gauges, he told CoinDesk.
“With countries formulating functional regulations to guide the nascent ecosystem, the level of adoption is bound to grow in the long term, creating a positive stance for investors to stack up now."
Read more: The Final Countdown to the Ethereum Merge Has Officially Begun
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
BTC, ETH, SOL move higher as markets eye Fed, Mag 7 earnings and weaker dollar
Crypto prices steadied as traders looked past short-term volatility with positioning shifting to the Fed, megacap earnings and a weakening dollar.
What to know:
- Bitcoin hovered just below $89,000 in Asian trading, posting modest gains in a narrow range as traders awaited a key Federal Reserve decision.
- A weaker U.S. dollar and record-setting global equity markets, led by technology shares and AI optimism, have supported risk assets but crypto has lagged metals like gold and silver.
- Analysts say bitcoin's rebound from the $86,000–$87,000 zone reflects reduced leverage and short-term stabilization rather than strong momentum as markets brace for Fed guidance and major tech earnings.
Top Stories
