The prospect of a respite from the Fed as early as December helped cryptos usher in the new month on a positive note. The Fed Chair Jerome Powell had in a speech on Wednesday hinted at slowing down its pace of rate hikes.
The Fed Chair acknowledged that as monetary policy affects the economy and inflation with uncertain lags, the full effects of the rapid tightening so far were yet to be felt. He added that it thus made sense to moderate the pace of rate increases such that the level of restraint would be sufficient to bring inflation down.
The chief of Federal Reserve also made it a point to assert that it would stay the course until the job of inflation control is done, as history cautioned against premature loosening in policy.
The Fed Chief’s confirmation of a softening in rate hikes lent succor to crypto world reeling under the effects of the FTX implosion, that dominated crypto world through most of November. Crypto markets had plunged to a market cap of $786 billion during the month – a marked contrast to November of 2021 when crypto markets had peaked to a market cap of close to $3 trillion.
The past month was indeed tumultuous for crypto sphere, with overall market cap falling almost 15 percent to $862 billion, from $1.01 trillion at the end of October.
Market leader Bitcoin (BTC) shed 16 percent whereas rival contender Ethereum (ETH) shed 18 percent. Meme-coin Dogecoin (DOGE) too lost 16 percent. Cardano (ADA) recorded losses of around 21 percent in the month of November. XRP (XRP) recorded a 12 percent decline.
Tether (USDT) shed 6 percent whereas BNB (BNB) of the Binance cryptocurrency exchange lost 8 percent of value. Market cap of USDCoin (USDC) dropped 1 percent.
Solana (SOL) registered a decline of 56 percent whereas FTT, the native token of FTX cryptocurrency exchange erased 89 percent of market cap in a single month.
Binance USD (BUSD) and Polygon (MATIC), both resisted the broad sell off to add 4 percent each to its market cap in the turbulent month of November.
Of the staggering $148 billion in market cap eroded in the month of November, $63 billion is attributed to Bitcoin and $34 billion is attributed to Ethereum.
Crypto world’s hierarchy remained more or less intact with only 3 of the top 10 cryptos altering their rankings between the last Sunday of October and the last Sunday of November. XRP slipped one notch in rankings whereas Binance USD (BUSD) and Polygon (MATIC) jumped one rank higher. All other cryptos among the top 10 retained their rankings.
Overall crypto market capitalization increased 0.8 percent overnight to $857 billion. SBF’s interview to the New York Times dominated crypto newsrooms and commentary. Bitcoin and Ethereum have gained close to 1 percent whereas Polygon (MATIC) dazzled with a 6 percent uptick.
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