London, Europe Brief News-Cryptocurrency markets hit a record low for the year due to the crypto crashing. The global market capitalization dropped to $1.02 trillion against $1.10 trillion yesterday. This year, the global cryptocurrency market valuation has dropped by over $1 trillion. And nearly every major coin is now approximately half or less of its all-time high.
The Reason For Crypto Crashing
The main reason for the crypto crisis appears to be a big sell-off by investors in response to rising inflation worries. Investors are choosing to avoid risky investments, which is reflected in the stock markets.
Bitcoin, the largest and most renowned cryptocurrency, has dropped below $24,000. Whereas other altcoins, beginning with Ethereum, have been losing value over the weekend. Ethereum sells at approximately $1238, its minimum value in more than 14 months. As per CoinMarketCap statistics, Solana has dropped by even more than 15% and is now trading at about $27.
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According to experts, the crypto price drop indicates investors’ risk appetite is declining. They certainly avoid riskier assets. They regard crypto as among the most volatile financial tools with all of its risks and volatility.
Statements About The Issue
“The crypto market was under pressure from the Federal Reserve, raising interest rates to battle inflation in recent months.” “Bitcoin, Ethereum, and other cryptocurrencies lost ground over the weekend following a broad sell-off following statistics suggesting US inflation reaching a 40-year high,” said Edul Patel, Co-Founder and CEO of the crypto investing platform Mudrex.
“Since Friday, the volume of crypto liquidations has been considerable, as investors appear to have panicked.” Bitcoin and Ethereum have dropped by up to 7% and are presently trading at their lowest levels of US$25,000 and US$1,300, respectively. The bearish trend will almost certainly continue in the next few days,” he continued.
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Although altcoins have generally lagged Bitcoin, they face additional pressure this time due to anticipated regulatory bottlenecks. According to a CoinDesk analysis, only a tiny number of altcoins expect to withstand such market changes. As per Shivam Thakral, CEO of cryptocurrency exchange BuyUcoin, increasing food, gas, and energy costs are exerting great pressure on the crypto market.
With Bitcoin and Ether seeing double-digit losses in the last 24 hours. However, Ethereum has recovered by more than 20% in the last week. Ethereum versus Bitcoin has plummeted by more than 11% in the same timeframe as Bitcoin’s dominance has surpassed 50% for the first time in almost a year.
“The daily chart of ETH-BTC has broken below the declining channel pattern and dropped below its prior support level of 0.055. The next level of support for ETH-BTC projects to be 0.038,” they claim regarding the crypto crashing.
