Bitcoin Everything You Wanted to Know About Why is crypto crashing today? Cryptocurrency markets have fallen to a new level this year today. The global market has dropped below $ 1 trillion to $ 977 billion, about 12% down from yesterday. The global cryptocurrency market has fallen by about $ 1 billion this year while almost every major currency now costs half or less of its full-time high.
The immediate reason for the crypto crash seems to be the biggest selling point by investors amid the threat of inflation. Investors also continue to distance themselves from dangerous assets, which are also reflected in the stock market.
Bitcoin, the largest and most popular cryptocurrency, has fallen to $ 24,000 while almost all altcoins, starting at Ethereum, have been bleeding since the weekend.
Ethereum dropped to its lowest level in more than 14 months, trading at about $ 1238. Solana dropped more than 15% and rounded the $ 27 mark, according to CoinMarketCap data at the time of writing.
Experts say the fall in crypto prices reflects a slowdown in appetite for investors. They are clearly aware of dangerous goods. With all the uncertainty and flexibility, crypto is considered one of the most flexible tools for investment purposes.
“The crypto market has been under pressure from the Federal Reserve, raising interest rates to combat inflation over the past few months. Bitcoin, Ethereum, and many cryptocurrencies lost over the weekend after a massive sale following data showing US inflation strikes for 40 years, ”said Edul Patel Co-Founder and CEO of the investment platform -crypto Mudrex.
“As investors look alarmed, the number of crypto closures has been high since Friday. Bitcoin and Ethereum are down 7 percent each and currently trade at very low of $ 25,000 and US $ 1,300. The bearish trend is likely to continue in the coming days, ”he added.
While altcoins have not historically worked well for Bitcoin, this time they have added pressure to potential regulatory barriers. A CoinDesk report quoted an expert as saying that only a small number of altcoins could survive such market movements.
Shivam Thakral, CEO of crypto exchange BuyUcoin said rising food, gas, and energy prices are putting a lot of pressure on the crypto market as Bitcoin and Ether have seen a two-digit loss in the last 24 hours.
“After the consumer price index reported the highest inflation rate since 1981, global financial markets have experienced a sharp decline,” said Thakral.
“The market is expected to remain volatile in the coming weeks and countries around the world continue to report high inflation rates. The current immersion of crypto prices allows investors to buy crypto at 2021 prices and we expect experienced investors to take advantage of this opportunity, ”he added.
According to Darshan Bathija, CEO of crypto exchange Vauld, many investors are concerned that unless inflation rates start to decline soon, the US Fed may need to tighten its grip on inflation at a faster rate than expected.
Bitcoin in the Oversold Zone
“Bitcoin has faced some significant adjustments, which have dropped to about $ 25,000, the lowest in 5 months. Interestingly, the Dollar Index (DXY) is also at a six-month high, gaining only 2% on the last day leading to a decline in Stock and Crypto markets.
In the course of daily time, the BTC trend has broken below the long triangular pattern. Quick and essential support is expected at $ 24,000. RSI fell below 30 as Bitcoin enters the best-selling region, ”WazirX Trade Desk analysts shared.
Meanwhile, Ethereum adjusted more than 20% last week, Ethereum against Bitcoin dropped more than 11% over the same period as the Bitcoin Rule broke more than 48% for the first time in almost a year.
“The daily ETH-BTC chart broke below the downtrend pattern and fell below its previous support of 0.055. Subsequent support for ETH-BTC is expected at 0.038 level, “they said.