What happens next for cryptocurrency when Bitcoin loses $10,000 and Ethereum loses $1,000 in four days?

<p>In just four days, Bitcoin's price fell by $10,000, and Ethereum's price fell by $1,000. According to specialists, the savage cryptocurrency selloff may not be over yet.</p> <p>This chaotic withdrawal from the crypto realm coincided with a big drop in equities, which is on track to be the worst month for US stocks since March 2020.</p> <p>As the new week begins, investors are bracing for an aggressive Federal Reserve monetary policy decision on Wednesday, as well as rapidly growing Russia-Ukraine geopolitical tensions.</p> <p>"Markets have resumed where they left off on Friday, in full risk-off mode." As we have previously stated, risk-off impulses are being driven by a number of variables, which may combine to form a perfect storm ahead of the FOMC meeting this week," said Win Thin, global head of currency strategy at BBH. "In addition to the Fed's predicted hawkish stance, markets are now dealing with escalating tensions between Ukraine and Russia, as well as dramatically lower PMI numbers."</p> <p>This risk-off mood has had a significant impact on the cryptocurrency market, which has seen $130 billion wiped out in the last 24 hours. Both Bitcoin and Ethereum have dropped more than 50% after reaching fresh all-time highs in November.</p> <p>Bitcoin was trading at $34,333.25 as of the time of press, down 2.9 percent on the day. And Ethereum was trading at $2,241.30, down 8.2% on the day.</p> <p>The likelihood of considerably tighter monetary policy weighs strongly on risk-on assets such as cryptocurrency.</p> <p>"The March liftoff is fully factored in, as are three additional raises in 2022." Thin added that two additional raises are presently expected in 2023, resulting in a terminal Fed Funds rate of 1.75 percent. "We continue to believe that this is far too low and that it should be raised to at least 2.0-2.25 percent." If inflation remains stubborn, the Fed may be forced to raise the Fed Funds rate to 2.5-3.0%."</p> <p>According to Exinity chief market strategist Hussein Sayed, the enormous sellof