Why Is The Crypto Market Crashing Today? Bitcoin Loses 6%, Ethereum Falls 8%

At the time of writing, on CoinMarketCap, the global crypto market capitalization was $914.50 billion, down 5.56% from the last day. However, the total crypto market volume increased by 66.3% to $81.92 billion in the last 24 hours.

Meanwhile, total DeFi volume is currently $5.84 billion — 7.13% of the total 24-hour crypto market volume. The volume of all stablecoins is now $74.80 billion — representing 91.30% of the total 24-hour crypto market volume.

– Advertising –

Bitcoin was trading near $18,765.08 down 6.04%, while Ethereum traded at $1,314 plummeting 8.44%. Other major cryptocurrencies like BNB, XRP, Cardano, Solana and Dogecoin fell 4-8%.

Bitcoin dominance stands at 39.34% currently down 0.19% on the day.

Over the past seven days, Bitcoin and Ethereum have lost almost 16% and 25% respectively.

Among the crypto market gainers are — Helium up 4%, Terra ClassicUSD and Neutrino up over 1% each. In the list of top underperformers were — Ethereum Classic dropping nearly 13%, followed by Kusama, Curve DAO Token, EOS, Celsius, and Ravencoin dropping nearly 11-12%.

Speaking about the performance of the crypto market, Rajagopal Menon, VP of WazirX said, “The Fed has been raising rates aggressively to keep inflation under control since its meetings in March this year. interest rate hikes will continue to prevail globally. The DXY US Dollar Index suffered another rally this week and is now approaching 110. This news has impacted several investment markets such as stocks and cryptocurrencies.

Adding Menon said, “after the successful merger, ETH prices fell on the phenomenon of ‘selling on news’; this was followed by a drop in the prices of other cryptos. Since then all the hype surrounding the merger has died down. The short-term traders who bought ETH in anticipation of positive momentum and to get the forked tokens sold their positions after the event. This resulted in a significant drop in prices.

Meanwhile, Edul Patel, CEO and Co-Founder of Mudrex – A Global Crypto Investment Platform, said: “The second largest cryptocurrency, Ethereum, is down 24% in the past week. . The drop could be due to soaring inflation, fear of recession and anxiety around the Federal Open Market Committee meeting on September 21 on the next interest rate hike.

The US Federal Reserve’s monetary policy will begin September 20-21. US inflation was higher than expected at 8.3% in August 2022.

Last week, Ethereum finally switched to Merge. The new upgrade completed Ethereum’s transition to proof-of-stake consensus, officially deprecating proof-of-work and reducing power consumption by approximately 99.95%. Many expected the launch of Merge to boost the crypto market, however, experts believe the upgrade came at the wrong time when the markets were not strong.

Amanjot Malhotra, Country Head – India, Bitay said: “The crypto crisis in the market is a direct result of macroeconomic conditions globally. The Ethereum merger couldn’t have happened at a worse time because the markets aren’t that strong. Due to soaring inflation, the Federal Reserve has taken an extremely bearish stance for the market as its main objective is to control inflation.”

Additionally, Prashant Kumar, Founder and CEO of weTrade, said, “Ethereum completed a historic update with the merger last week. With such a large movement, there are bound to be some starting issues. There were a number of short-term sales that were also expected. However, we are seeing a decline in all cryptocurrencies not just Ethereum. The current decline cannot be attributed to the merger alone, but global economic factors, including rising US inflation, are major contributors.

Talking about the probable direction of Bitcoin, the CEO of Mudrex said, “The CPI data released has had a negative impact on the Bitcoin market, so BTC will likely retest the buyer’s commitment between 19,000 and 18 000 USD support. We could see an uptrend if BTC can survive above this support.”

Catch all the trade news, market news, breaking news and latest updates on Live Mint. Download the Mint News app to get daily market updates.

More less

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.

Post your comment

We would like to thank the author of this short article for this awesome content

Why Is The Crypto Market Crashing Today? Bitcoin Loses 6%, Ethereum Falls 8%

Explore our social media accounts along with other pages related to themhttps://metfabtech.com/related-pages/