ETH - Crypto Crash Continues as Bitcoin Ethereum and XRP All Plunge Again Today
It's shaping up to be another ugly day in the world of crypto. As of 9:30 a.m. ET Wednesday, most major tokens were trending lower, led by Bitcoin (CRYPTO: BTC) , which had declined 5.3% over the past 24 hours. The world's largest cryptocurrency by market capitalization was trading above the $20,000 level as of this time Tuesday morning. But a sectorwide sell-off sent it below $18,500 late in the day. At the time of this writing, the token was changing hands in the neighborhood of $19,100.
Things aren't much better for large-cap tokens Ethereum (CRYPTO: ETH) and XRP (CRYPTO: XRP) . Those two tokens were down by 5.8% and 9%, respectively, over the past 24 hours, as of 9:30 a.m. ET.
It appears that macroeconomic factors continue to drive negative sentiments regarding cryptocurrencies. The most notable development in the past 24 hours was an overnight shift in the yield on the U.S. 10-Year Treasury. This key bond, which impacts the valuation models for most risk assets and provides the benchmark lending rate for many debt instruments, rose above the 4% threshold for the first time since 2008. Generally speaking, higher yields on "risk free" bonds bode poorly for risk assets. When investors can achieve more attractive returns from lower-risk alternatives, some choose to, pulling funds that might otherwise have gone into those riskier assets away from them. In addition, investors tend to require higher anticipated returns on their risky investments when they have a wider range of good alternatives to choose from.
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Crypto Crash Continues as Bitcoin, Ethereum and XRP All Plunge Again Today