Crypto crash reason: Why is crypto crashing today? Investors selling off amid increased inflation fears is the immediate cause of the crypto crash. Investors continue.
to avoid riskier assets that are reflected in the stock market. Why is crypto falling today? Today’s cryptocurrency markets are at an all-time low. The global market cap has fallen below $1 trillion to $977billion, a 12 % drop since yesterday. The global cryptocurrency market cap fell by approximately $1 trillion in 2018, while nearly..
every top coin
has half of its previous highs. Bitcoin, the most well-known and popular cryptocurrency, is down to $24,000, while nearly all altcoins (starting with Ethereum) are seeing a drop in prices since Saturday.
Ethereum is trading
at $1238, its lowest level in over 14 months. According to CoinMarketCap data, Solana is trading at around $1238.
Experts believe that investors are losing their appetite for risk due to the plunge in crypto prices. They are wary of risky assets. Crypto is considered one of the most volatile investment instruments due to its volatility and uncertainty.
The Federal Reserve has increased interest rates to combat inflation in the last few months, putting pressure on the crypto market. Bitcoin, Ethereum, and most cryptocurrencies suffered losses this weekend following a wide sell-off after data showed that US inflation had reached a 40-year peak,” stated Edul Patel, Co-Founder, and CEO at Mudrex, a crypto investment platform.
The number of cryptocurrencies
liquidations have been increasing since Friday, as investors appear to have panicked,” said Mr. Bitcoin and Ethereum plunged as much as 7 percent each, and are currently trading at US$25,000 to US$1,300. He said that the bearish trend could continue for the next few days.”
Altcoins have historically performed better than Bitcoin but now they face regulatory hurdles. CoinDesk reported that an expert said that only a few altcoins will survive market movements.
Shivam Thakral CEO of crypto exchange BuyUcoin stated that rising energy, food, and gas prices are placing tremendous pressure on crypto markets as Ether and Bitcoin have suffered double-digit losses over the past 24 hours.
Thakral stated that “after the consumer price index reported the highest level of inflation since 1981,” financial markets around the world have experienced a sharp downturn.
“The market will remain volatile in the next weeks, and countries around the world continue to report high inflation figures. Investors can now buy crypto at 2021 prices. We expect seasoned investors to profit from the current dip,” he said.
CEO of crypto exchange Vauld says that most investors are concerned about the possibility that the US Fed will tighten its grips and raise interest rates faster than expected if inflation numbers don’t drop soon.
Ethereum’s value has corrected by over 20% in the last week, while Ethereum against Bitcoin fell by more than 11% during the same time as Bitcoin’s dominance broke above 48% for nearly a year.
“The daily chart of ETH-BTC fell below the descending channel pattern, and below its previous support at 0.055. They stated that the next support level for ETH-BTC will be at 0.038.
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