Crypto Market Capitalization Drops 6.6% Amid Ongoing Sell-Off

Major cryptocurrencies experienced losses of up to 14% in the last 24 hours due to bearish sentiment and a lack of market support. Key points include:

• Solana’s SOL dropped 14%, with 7-day losses exceeding 20%
• Dogecoin, XRP, and Ethereum fell over 8%
• Bitcoin fell below $92,000 for the first time since late November, risking a break of the $90,000-$110,000 range
• Overall market capitalization declined by 6.6%
• The CoinDesk 20 index dropped more than 7%
• Traders suggest that bearish sentiment may be exaggerated, with macroeconomic factors crucial for market recovery

Comments from industry professionals indicate that:

• Jeff Mei from BTSE noted Bitcoin, Ethereum, and Solana are undervalued compared to all-time highs, influenced by inflation concerns and Fed rate cut pauses
• Augustine Fan from SignalPlus stated that negative economic data could lead to Fed actions that might support the crypto market

The U.S. Consumer Price Index (CPI) rose 0.5% in January, higher than the anticipated 0.3%, prompting investors to adopt risk-off strategies until signs of government intervention emerge.