The crypto market has taken a U-turn moving into the red zone. After successfully trading in the green zone yesterday, the crypto market suddenly entered the red area.
These are the movements that make this crypto space highly volatile and put traders in significant confusion to take entry into this market. Therefore, investors need to keep updated on Cryptocurrency to make different investment decisions.
The whole crypto market traded into the red zone, where all other altcoins also fell. As a result, the global market cap stood at $918.95 billion, and its trading volume decreased by 28.45% to $61.32 billion.
The top-gaining Cryptocurrency was Quant, which increased by 5.90% to $173.50 in the last 24 hours. At the same time, the top losing Cryptocurrency was TerraClassic, which declined by 8.61% to $0.04690.
Key points:-
- The global market cap reached $918.95 billion
- The top-gaining Cryptocurrency was Quant, which increased by 5.90%.
- The price of Ethereum decreased by 2.39% to $1297.97.
Cryptocurrency Prices
Bitcoin price declined after steep gains and returned to the red zone. This movement of Bitcoin has made investors’ choices more difficult. The price of Bitcoin decreased by 3.18% to $19,189.18.
Bitcoin’s dominance also went down on the crypto market, and the trading volume of Bitcoin decreased by 28.63% to $34.62 billion.
The price of Ethereum decreased by 2.39% to $1297.97.
Ethereum has shown the same response as Bitcoin, which diminished its value after a steep gain yesterday. For the whole day, the market traded into the red zone and never got a chance to come back to the green zone.
The trading volume of Ethereum also went down by 38.9% and reached $11.63 billion.
Other Altcoins
Ripple’s price also goes down by 5.06% to $30.10, whereas its 24-hour trading volume drops by 32.31% to $11.62 billion.
Cardano has also diminished its value by 4.83% to $12.59 billion, and its trading volume increased by 51.81% to $510.8 million.
The price of Solana fell by 8.27% to $31.33, whereas its trading volume decreased by 44.65% to $772.81 million.
Meme Coins
The price of Dogecoin decreased by 2.88% to $0.05893, whereas its trading volume decreased by 53.08% to $222.9 million.
Shiba Inu’s price decreased by 4.41% to $0.00001021, and its total trading volume decreased by 56.29% to $203.5 million.
What is the biggest reason the crypto market is crashing?
The entire crypto market witnessed a roller coaster journey this year. The crypto market experienced a continuous drop and was continuously affected by the significant crypto event and exchange crashes. However, crypto winter is about to end, and most of the cryptos are already trading in the red zone.
Although crypto crashes are nothing new for the crypto market, there has always been something new regarding crypto price fluctuations. These crypto-specific movements behind the price movements are now changed into macro events that similarly influence the global economic system.
FTX downfall:-
FTX’s downfall is one of the biggest turned-out events for the crypto market that wiped out millions of funds from the market. FTX, which was known as one of the major crypto exchanges, collapsed recently. The FTX crash has affected the entire crypto market along with major cryptos, Bitcoin, and ethereum.
Fed rate hikes:-
The Fed rate hike is the biggest reason for the crypto price swings this year. Since the pandemic, the United state has continuously raised interest rates, affecting not only the crypto market but also the other parts of the world that recorded high inflation.
In order to reduce high inflation, the United States and central banks have increased interest rates by reducing the money circulation in the system. One of the biggest reasons behind the crypto market’s downfall is the increased fed rates that have been dictating the prices the whole year.
Terra Luna crash:-
Another biggest reason contributing to the crypto volatility is the terra luna crash, which is why the bitcoin price fluctuates. The Terra Luna blockchain platform was created in 2018 by Do Kwon and Daniel Shin of Terraform Labs.
Before the Terra Luna crypto crash, the coin was among the ten biggest crypto market capitalization. The de-pegging of the USD from the US dollar has devalued the Luna crypto. In this event, Luna fell down 95 % in a day. Since the crash, Terra has lost its 99 % value.
The continuous drop in Bitcoin prices:-
The Luna crash also caused constant volatility in the market, affecting Bitcoin and other major cryptos. From its highest price of $68000 in November 2021, Bitcoin currently trades around $19,189.18. BTC has plunged more than 70% this year.
Speculation and manipulation:-
When its crypto market faces losses, it is common for investors to sell off their assets to avoid potential losses. This scenario gets intensified when the big player of the market whales sell their holdings. As a result, a FUD is created in the market, further influencing the crypto prices.
Conclusion:-
While there is no denying that the crypto market is going through a rough period, this volatility could stop some highly potential coins from emerging this year. However, as per experts, the market will recover, seeing a big bull run in the future.
FAQs:-
What is mining in Cryptocurrency?
Mining is the process that creates Cryptocurrency, and transactions are verified on the blockchain.
How do you buy Cryptocurrency?
You can buy Cryptocurrency from an exchange platform. You need to create an account on the exchange platform in order to buy and sell cryptocurrencies.
How do you store Cryptocurrency?
You can store Cryptocurrency in digital wallets. Hardware and software are the two most common types of wallets to store cryptos. A software wallet is a common wallet that is available on your device, while a hardware wallet is a physical device.
