‘Why is crypto crashing? One of the most searched questions by the crypto community nowadays!
If you are a regular investor in the crypto market, then you must know that crypto market capitalization has continued to crash. The crypto market is now sitting at $1.04 trillion, with a decrease of more than 8% in the last 24 hours.
Furthermore, almost every principal cryptocurrency was in the red at the time of scripting. There are prices for many dropping by more than 11% and establishing new lows in the previous 24 hours.
Also, the dominance of the top currencies has decreased by nearly 0.5 percent to 47.20 percent of the overall crypto market.
Speaking of Bitcoin, the BTC price has tumbled by a staggering 17.02% over the past week. At the time of writing, ETHER is trading.
At the time of writing, Ethereum is trading at roughly $1350, a drop of more than 14 months. Further, SOLANA has dropped by almost 30% and is floating around the $29 mark.
According to experts, the cryptocurrency’s price drop suggests a declining risk appetite among investors. They are very cautious of risky investments. It is one of the most volatile investments due to its unpredictability and volatility.
Meanwhile, the overall currency market capitalization increased by 31.35 percent to $94.56 billion in the last 24 hours at the time of scripting. It signifies the investors’ substantial sell-off of digital assets. DeFi’s market share volume in crypto was $7.76 billion, 8.2% of all crypto trading volume. The stable coin market had a value of $82.21 billion, 86.94% of the entire cryptocurrency market’s 24-hour turnover.
Why Is Crypto Crashing?
Bitcoin is trading at $25,762.63 as of writing, down from its all-time high of nearly $68,000. Central banks’ interest rates have been hiked, as a result of which cryptocurrency trading has decreased, and their values have fallen. Consider this: Bitcoin’s year-to-date return is down 40%, whereas Ethereum’s is down 50%.
Here’s what experts have to say about the cause of the market drop
“The crypto market has been under pressure from the Federal Reserve, hiking the interest rates to combat inflation over the past few months. Bitcoin, Ethereum, and most currencies suffered losses over the weekend after a broad sell-off following the data showing US inflation hitting a 40-year high,” said Edul Patel, Co-Founder and CEO of the crypto investment platform Murex.
Read More: Crypto Crash – There is nothing to Panic about, we have seen this before!
