Why does Crypto fall today? Cryptocurrency market has fallen to the lowest new today today. The global market capitalization has shrunk below $ 1 trillion to $ 977 billion, around 12 % falls since yesterday. The capitalization of the global cryptocurrency market has dropped around $ 1 trillion this year while almost every top coin is now worth half or even less than the highest of all time.
Direct triggers for Crypto accidents seem to be massive sales action by investors amid increasing inflation fears. Investors also continue to move away from risky assets, which also reflect in the stock market.
Bitcoin, the largest and most popular cryptocurrency, has dropped to $ 24,000 while almost all altcoin, starting from Ethereum, is the price of bleeding since weekends.
Ethereum has fallen to the lowest level in more than 14 months, trading around $ 1238. Solana has dropped more than 15% and floated around the $ 27 sign, according to Coinmarketcap data at the time of writing.
Experts say that crypto prices plunge indicate a reduced risk of investors. They are clearly aware of risk assets. With all its uncertainty and volatility, Crypto is considered one of the most unstable instruments for investment purposes.
Crypto market has been under pressure from the Federal Reserve, climbing interest rates to fight inflation for the past few months. Bitcoin, Ethereum, and most of the cryptocurrency suffered losses during the weekend after a broad sale action showing US inflation reached the highest 40 years, “said the founder and CEO of Edul Patel from the Crypto Mudrex investment platform.
Because investors seem to have been panicked, the amount of Crypto liquidation has been high since Friday. Bitcoin and Ethereum plummeted 7% each and are currently traded at the lowest price of US $ 25,000 and US $ 1,300. Bearish trends may continue in the coming days, “he added.
While Altcoin is historically performing poorly, this time they have additional pressure from prospective potential rules. A report by Coindesk quoted an expert who said that only a small number of Altcoin tended to survive from such a market movement.
Shivam Thakral, CEO of Crypto Exchange Buyuucoin said that the increase in food, gas and energy prices put exceptional pressure on the crypto market because Bitcoin and ether have witnessed the losses of two digits in the last 24 hours.
After the consumer price index reported the highest inflation since 1981, financial markets around the world have seen a sharp decline,” said Thakral.
“The market is expected to continue to chop in the coming weeks and countries around the world continue to report high inflation rates. The current decline in Crypto prices allows investors to buy Crypto at 2021 and we hope that investors have experience taking advantage of the decline, “he added.
According to Darshan Bathija, Crypto Exchange Vauld CEO, most investors are worried that except the amount of inflation will soon decrease, Fed As may have to tighten the government by increasing interest rates at faster speeds than expected.
Bitcoin in the Oversold zone
Bitcoin faces other significant corrections, down to nearly $ 25,000, the lowest in more than 5 months. Interestingly, the dollar index (Dxy) is also at the highest six months, up 2% on the last day which leads to a decline in the stock market and crypto. In the daily time frame, the BTC trend has broken under the triangular pattern formed. Direct and main support is expected to be $ 24,000. RSI dropped below 30 when Bitcoin entered the Oversold zone, “Analysts in Wazirx Trade Desk shared in a note.
Meanwhile, Ethereum was corrected by more than 20% over the past week, Ethereum against Bitcoin fell more than 11% in the same period as the dominance of Bitcoin broke above 48% for the first time in almost a year.
The daily chart for ETH-BTC has broken under the channel pattern of decline and falls under previous support 0.055. The next support for ETH-BTC is expected to be at the level of 0.038, “they said.
