In a sign of the deteriorating state of the crypto market, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, plummeted below $2,000 on Friday, May 20.
According to a tweet from the on-chain monitoring platform Glassnode, the number of Ethereum addresses in a loss hit a two-year high of 33,403,723.452 at press time. Since the beginning of 2022, the hourly data reveals that the number of lost addresses began to rise.
The Federal Reserve’s (Fed) aggressive strategy to tame inflation by increasing interest rates has been difficult for the market to comprehend. It has been a wild ride for risk assets prices so far this year, with the lowest price of ETH being $1,800 this week, its lowest point since July 2021.
In the past, the price of Ethereum was closely linked to the price of Bitcoin, but the big software upgrade known as the merge has cast a shadow over the future of the asset.
Cryptocurrency markets may be a reflection of global anxieties, such as rising inflation and monetary policy changes in the US, according to some market players. Governments have lately shown interest in regulating the crypto industry, which might further frighten investors.
According to CoinMarketCap, Ethereum’s price was $1,966 at press time, down 3.33 percent from the previous day and 0.55 percent from the preceding seven days. Its current market capitalization is $237.7 billion dollars.
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