If you’ve been wondering why cryptocurrency is down today, the answer is quite simple. The cryptocurrency market is affected by rising inflation and interest rate conversations. Following a recent statement from Fed Chair Powell, stocks were on a downward trend. However, the central bank is trying to fight inflation, which could have led to some of the current crypto market problems. One of the most popular analysts, Steve Ehrlich, says that the crypto crash might have started with the tech sector. If you are interested in bitcoin trading, visit BitQT to acquire an utter guide to crypto trading.
It is because of two types of investors: retail and institutional investors. While institutional investors are large companies, they are not typically as knowledgeable as retail investors, who are likely to sell off their shares at signs of uncertainty. Moreover, a large-scale property giant in China, Evergrande, has sparked widespread concerns in the global economy. It is expected that a business default could impact the entire cryptocurrency market. Here we will tell you about why the cryptocurrency market went down.
Reasons for the downfall of the Crypto market
This drop in prices of most major cryptocurrencies could be due to the recent events in the global stock markets. Russia’s missile strikes on Ukraine were not provocation but deliberate and well-planned.
Despite the broader sell-off, investors are unlikely to panic over the news. A few of the leading coins are down several percentage points. The biggest losses in the past 24 hours have occurred with Bitcoin, which has gone down nearly 8%. While Bitcoin has dropped over 7% in a day, it is still up more than 10% in the past fourteen days.
Other major cryptocurrencies are also down. Ethereum, Ripple, and XRP fell by nearly one percent. XRP fell by nearly three percent. Cardano, Terra, and Solana rose just 1.03 per cent. Colorado and Shiba Inu remained flat. Overall, the market is range-bound, with initial support at US$46,000 and resistance at US$60,000. But while the market has seen a huge sell-off in recent months, some traders are holding on to their bullish positions.
Although the cryptocurrency market is down 7%, major cryptocurrencies have sunk several percentage points over the past 24 hours. The price of Bitcoin has fallen nearly 8% over the last 24 hours, making it the largest single-day drop since January 21, and XRP was down even more over that period. Other cryptocurrencies, such as Ether, were down by nine percent. Many major cryptocurrencies are down, with some dangling below five dollars.
The cryptocurrency market is down today, with a few exceptions. Bitcoin has dropped over 10% in the past 24 hours, with XRP down almost 10%. While Ethereum and Galla are up by 3%, most major cryptos are down around 7%. But these are still small compared to the massive decline in Bitcoin and other cryptocurrencies. The biggest declines, which are in the top ten, are amongst retail investors.
The market is down for several reasons. The SEC is cracking down on cryptocurrency exchanges. A major cryptocurrency exchange, Binance, was hacked. Meanwhile, Litecoin, Ethereum, and Dash are all down, but the Bitcoin price has remained down over the last 14 days.
These currencies are not gaining ground because of a massive bubble and are subject to many risks. The crypto market may be affected by a global economic crisis.
The bitcoin price has experienced a massive drop in the last 24 hours, with the biggest coin, Bitcoin, down nearly 8%. It is the biggest one-day drop in the crypto market since January 21. Though it’s still up about 10% over the past 14 days, the price has lost almost 10% in a day. It has resulted in panic sales of cryptos, and many traders are losing faith in it.
Apart from these factors that we have mentioned in this article, the cryptocurrency market is down because big banks are lobbying for more regulation of the cryptocurrency industry. This is not the only reason that cryptocurrencies have slumped, but it’s because of their uncertainties. The SEC’s actions could lead to a decrease in their value. A large-cap company might decide to ban cryptocurrency.