Today, the cryptocurrency market took a nosedive, and here's an in-depth analysis of what's happening:
The market decline has reflected a broader sell-off in traditional markets, influenced by an uptick in geopolitical tensions and economic uncertainty. So, as traditional markets retreated, cryptocurrencies didn't miss a beat in joining the decline.
During afternoon business hours in the United States, bitcoin suffered a sharp drop below the $66,000 mark after almost touching $71,000 just hours earlier.
At press time, Bitcoin has with claws its way back to exactly $69,934, a 5% drop in the last 24 hours alone. Not too far, Ethereum saw a dramatic 12% drop to $3,100 before paring some losses to $3,230 at the time of writing.
The crisis was not a smooth slide but rather a free fall. Futures market data signaled a brutal session for traders using leverage. In just one hour, more than $400 million in leveraged positions were liquidated.
Binance traders faced the brunt, with liquidations totaling $171 million, while their counterparts on OKX Exchange saw 158 million dollars disappear. The total damage to the market in the last 24 hours? A whopping $860 million among 270,993 merchants, according to glass coin.
This market decline coincided with a decline in US stock markets, in reaction to new inflation data indicating a third consecutive month of acceleration. This higher-than-expected Consumer Price Index (CPI) figure has tempered any remaining optimism about the Federal Reserve's near-term interest rate cuts, casting a wet blanket on hopes that inflation was near. to be under control.
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In the midst of this catastrophe, Bitcoin managed to increase its market dominance to almost 56%, reaching a peak for this market cycle. This means that even when markets fall, Bitcoin somehow finds a way to reinforce its position as crypto king.
Looking ahead, the crypto community has its eyes on the next halving event scheduled for April 21. Historical trends and expert opinions, including opinions from Arthur Hayes, suggest that the event could trigger several more price corrections.
With all of these factors at play, current market movements are a puzzle of investor sentiment, economic indicators, and upcoming major crypto events.
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