Cryptos extend losses after central banks rate hikes

Cryptocurrencies extend their losses. Bitcoin (BTC), the world's largest digital currency, has dropped more than 1% on Friday and is moving away from $18,000, while Ethereum (ETH), the largest altcoin, has fallen a little less and is trying to stabilize near $1,200.

Central banks moves during the week have completely contained the rally in cryptocurrencies. The Federal Reserve's (Fed) 50 basis point hike on Wednesday has been joined by the same amount of rate hike from the Bank of England (BoE) and the European Central Bank (ECB), with the latter taking a much more hawkish stance embodied by its president Christine Lagarde. "What we have done so far is not enough to win the battle against inflation. This warrants a 50 basis point rate hike at our next meeting and probably the one after that, and maybe the one after that. I don't know if this will be the new normal," the Parisian banker acknowledged.

"Bitcoin seems stuck around the $17,000 area," commented Edward Moya, senior market analyst at Oanda. Additionally, experts at Julius Baer believe that the recent Binance scare will prevent the market from recovering in the short term.

Meanwhile, Sam Bankman-Fried, who was denied bail by the Bahamas, will remain in the West Indian prison of Fox Hill, considered by some to be "worse than Guantanamo", until February 2023. He is scheduled to appear next before a Bahamian court on February 8.

In other market news, there has been little movement. Binance coin (BNB) falls 0.5%, while Dogecoin (DOGE), Cardano (ADA) and Solana (SOL) lose positions, among others.