Why is the crypto market crashing today? Bitcoin loses 6%, Ethereum down 8% | Mint – mint | Jewelry Dukan

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

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

Bitcoin was trading down 6.04% from $18,765.08, while Ethereum was trading at $1,314, down 8.44%. Other major cryptocurrencies like BNB, XRP, Cardano, Solana, and Dogecoin plunged between 4% and 8%.

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

Over the past seven days, Bitcoin and Ethereum are down nearly 16% and 25%, respectively.

Crypto market winners include: Helium up 4%, Terra ClassicUSD and Neutrino each up more than 1%. The top list of underperforming companies included – Ethereum Classic, which plunged nearly 13%, followed by Kusama, Curve DAO Token, EOS, Celsius, and Ravencoin, which plunged between nearly 11-12%.

Speaking on the crypto market trajectory, WazirX Vice President Rajagopal Menon said, “The Fed has been aggressively raising interest rates since its March meetings this year in a bid to tame inflation. Rate hikes will continue to be dominant around the world. The US dollar index DXY has seen another rally this week and is now approaching 110. This news has impacted several asset markets such as equities and cryptocurrencies.”

Menon added: “Following the successful completion of the merger, ETH prices fell due to the sell on the news phenomenon; this was followed by a drop in the prices of other cryptos. Since then, all the hype surrounding the merger has died down. Long-term traders who bought ETH in anticipation of positive momentum and to get the forked tokens sold their positions after the event. This has resulted in a significant price decline.”

Meanwhile, Edul Patel, CEO and co-founder of Mudrex – A Global Crypto Investing Platform said, “The second largest cryptocurrency, Ethereum, is down 24% in the last week. The slump could be due to rising inflation. Fears of a recession and dread of the September 21 Federal Open Market Committee meeting on the next rate hike.”

Federal Reserve monetary policy begins 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 has completed Ethereum’s transition to proof-of-stake consensus, officially abolishing proof-of-work and reducing energy consumption by ~99.95%. Many had expected that the launch of the Fusion would boost the crypto market, however experts believe the upgrade came at the wrong time when markets are not strong.

Amanjot Malhotra, Country Head – India, Bitay, said: “The crypto market collapse is a direct result of macroeconomic conditions worldwide. The Ethereum merger could not have happened at a worse time as the markets are not that strong. With inflation rising, the Federal Reserve has taken an extremely bearish stance on the market as their main goal 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 will inevitably be teething problems. There was a certain amount of short-term selling was also expected. However, we are seeing a decline across all cryptocurrencies and not just Ethereum. The current decline cannot be attributed to the merger alone, but global economic factors, including inflation increases in the US, are major contributors.”

Speaking on Bitcoin’s likely direction, Mudrex CEO said, “The released CPI data has had a negative impact on the Bitcoin market, so BTC is likely to retest buyer’s commitment between $19,000 and $18,000. We could see a bullish pattern if BTC can survive above this support.”

Get all the business news, market news, breaking news and latest news updates on Live Mint. Download the Mint News app for daily market updates.

More less

Subscribe to something Mint newsletter

* Enter a valid email address

* Thank you for subscribing to our newsletter.

Post your comment

Leave a Comment