Why Are Ethereum and Altcoins Falling?

Ethereum dropped 2.3% today, trading at $4,300. It lost 6.2% over the week. The Ethereum Foundation’s deposit of 10,000 ETH ($42.7 million) to Kraken sparked the decline. Additionally, whale sell-offs and shifting investor sentiment pressured the market. However, the fear and greed index shows neutral sentiment. This did not shield ETH and other altcoins from the downturn.

World Liberty Financial (WLFI) also faced a sharp decline. Despite Trump family backing, WLFI fell 50% from its peak. Today, it dropped 8% to $0.2238. Token unlocks triggered investor sell-offs. Meanwhile, WLFI’s market cap stands at $5.54 billion. This reflects broader market pressure.

PythNetwork (PYTH) also saw a downturn. After nearly 100% gains in a day, PYTH fell 3.84% today. Mixed technical signals and profit-taking drove the decline. Still, PYTH remains up 37% weekly. Finally, Bonk (BONK) meme coin lost 1% today. A wallet linked to Galaxy Digital transferred 510 billion BONK to an exchange, increasing sell-off pressure.

How FOMC and Economic Data Impact the Market

The crypto market fluctuates with U.S. economic data releases this week. The JOLTS report comes today, followed by unemployment claims tomorrow and non-farm payrolls on Friday. These reports will influence Fed interest rate decisions. Moreover, $242 million in crypto positions were liquidated, affecting 107,700 investors.

Ethereum long positions saw $43 million in liquidations, followed by Bitcoin at $21.73 million.The market shows mixed trends. Bitcoin and XRP rise, while ETH, WLFI, and PYTH decline. This divergence stems from varying investor sentiments. Ultimately, volatility increases ahead of the FOMC meeting. Investors focus on economic data and Fed outcomes. 

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The post Crypto Crash: Why Ethereum, WLFI, PYTH, BONK Plummeted? appeared first on Coin Engineer.