Thanks to Putin’s war on Ukraine, the crypto market is crashing again today. The global market cap of cryptocurrencies has plunged to a new low and fallen below $1 trillion to $977 billion. That makes it 12% since yesterday. Major crypto stalwarts are pulling their money out of the market.
Major cryptocurrencies like Bitcoin, Etherium, and Luna are in the fall. For the very first time, Bitcoin has fallen below $25000 since December 2020. Similarly, Binance has temporarily paused Bitcoin withdrawals due to stuck transactions.
The major reason behind this much market volatility is the uncertainty and absence of regulation. Furthermore, the immediate trigger of the crypto crash appears to be
- Massive sell of by investors
- Heightened inflation fears
- Riskier market and assets
- Global uncertainties
- Dwindling stock market
“The crypto market has been under pressure from the Federal Reserve, hiking the interest rates to combat inflation over the past few months. Bitcoin, Ethereum, and most cryptocurrencies suffered losses over the weekend after a broad sell-off following the data showing US inflation hitting a 40-year high,” said Edul Patel Co-Founder and CEO of crypto investment platform Murex.
“As investors seem to have panicked, the number of crypto liquidations has been high since Friday. Bitcoin and Ethereum plummeted as much as 7% each and is currently trading at their lowest at US$25,000 and US$1,300. The bearish trend may likely continue in the next coming days,” he added.
Pundits are guessing the next support for bitcoin is roughly $19500, which is quite a benchmark to consider at this stage. Although more than $200 billion were wiped out of the crypto market over the weekend. It seems that there is a bloodbath in the crypto market. Investors are continuously losing confidence.
Many are guessing that lowering market value doesn’t mean that crypto has altogether lost its value. Rather, they are taking it as an opportunity to buy more and sell when the prices rise.
Peter Schiff, one of the leading crypto stock brokers and analyst, has linked the crypto crash with rising food and energy prices.
Schiff further explained in several tweets Sunday: “With food and energy prices soaring, many Bitcoin Holders will be forced to sell to cover the cost. Grocery stores and gas stations don’t accept bitcoin.”
He noted: “When Bitcoin crashed during Covid no one needed to sell. Consumer prices were much lower and Holders got stimulus checks.”