Latest, take a look! Why did Cardano (ADA) drop today?

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After the Federal Reserve cut interest rates by 25 basis points and released a more hawkish stance, the cryptocurrency market experienced a significant decline, with risk assets being widely sold off, leading to an evaporation of approximately $300 billion in total market value.

Federal Reserve Chairman Jerome Powell pointed out that there may be a loosening of the pace of rate cuts next year, which affected the sentiment of risk asset investors, causing the price of Bitcoin to drop below $100,000, with the current trading price at $93,600. 

Similarly, the price of Ethereum's Ether plummeted from around $4,000 to the current approximately $3,400, a decline of over 16%. Cardano’s native token ADA also did not escape, plummeting about 3% in the past 24 hours, from around $0.896 to the current $0.869 at the time of writing.

After the Federal Reserve cut interest rates and indicated its hawkish stance, Cardano's price has dropped about 20.6% from a high of around $1.316 in the past month.

The rise in U.S. Treasury yields leading to a stronger dollar has decreased the attractiveness of risk assets, causing the price of Cardano ADA to drop in the past 24 hours, along with other various risk assets.

The market uncertainty brought about by the Federal Reserve's hawkish stance and the strengthening dollar generally affected risk assets, and the decrease in liquidity during the holiday period also impacted the market.

According to existing data, the drop in Cardano's price has led whales to accumulate over 20 million ADA in just 48 hours, a piece of news first shared by renowned cryptocurrency analyst Ali Martinez.

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