Apr 15 โ Crypto Market was recovering from the last crash due to the conflict between Russia and Ukraine. However, the market has crashed and lost all the gains made in the last 3 weeks.
Here is โWhy Crypto Crash Todayโ
Since the winter of December 2021, the cryptocurrency market has been under pressure from US regulations. The cryptocurrency market has been down ever since. At the end of February, the conflict between Russia and Ukraine caused the world market to lose momentum. The cryptocurrency market could not keep itself protected against the crash. The market crashed massively.
However, the market has been recovering since the end of March, but once again the market has crashed and this is due to the new monetary policy of the US Federal Reserve.
In 2021, the crypto market in general reached the new target. Led by Bitcoin, the overall crypto market capitalization surpassed $3 trillion in the second half of 2021. However, the market has since pulled back and been unable to achieve that feat again. Currently, the overall market capitalization is less than $2 trillion. Bitcoin dominance is currently 40.69% of the total market capitalization.
Below is the list of the top 10 cryptocurrencies and how they have performed since January 2022:
|
Range |
Name |
the last year |
market cap |
|---|---|---|---|
|
one |
15.78% |
$763,560,426,372 |
|
|
two |
19.37% |
$365,926,010,243 |
|
|
3 |
0.03% |
$82,712,768,378 |
|
|
4 |
20.79% |
$68,975,892,598 |
|
|
5 |
0.02% |
$50,199,476,718 |
|
|
6 |
XRP |
8.35% |
$37,473,269,728 |
|
7 |
42.77% |
$33,973,205,843 |
|
|
8 |
30.85% |
$32,125,287,845 |
|
|
9 |
10.33% |
$29,529,091,291 |
|
|
10 |
31.47% |
$20,988,900,517 |
Before we discuss why Crypto Crash today, let us discuss why Crypto crashed in February 2022:
Here are some reasons for "Why Crypto Crashed in February ended?":
one. Russia-Ukraine crisis
The Crypto market has been volatile and even a small event anywhere in the world has affected the market. The latest crisis between Russia and Ukraine has been the main reason why the cryptocurrency market has crashed once again. During the last few days, due to fear of war, the market was trading lower but a slight recovery was noted in the market.
After Russian President Vladimir Putin announced military action in Ukraine, the market lost all the gains it had made in January 2022.
Bitcoin dipped below $36,000 which was the lowest in 2022 as of now. Bitcoin lost almost half of its value from its November high of $68,990 due to geopolitical tensions.
The event directly led to a panic sell-off and as a result, the market crashed.
2. US Federal Reserve regulation
The US Federal Reserve back then had indicated that there could be four rate hikes in 2022. This indication from the US Federal Reserve spooked global markets. In addition to this, the feds also indicated that there may be regulations for cryptocurrencies. This announcement caused multiple crashes in the crypto market.
Now Let's Discuss, "Why Crypto Crashed Today"
The cryptocurrency market has been recovering after the collapse caused by the conflict between Russia and Ukraine. However, the market is again under heavy pressure and has shown almost no signs of recovery in the last 72 hours. The latest crypto market crash was induced by the US Federal Reserve's announcement of tighter monetary policy. The Fed tightening by 0.5 percentage point, as well as a $95 billion per month balance sheet liquidation, sent crypto markets lower.
The crypto market has largely relied on the momentum of Bitcoin. It has been noted that the positive momentum of the Bitcoin price has influenced most of the cryptocurrencies and thus caused an increase in the cryptocurrency market, driving down the price of Bitcoin, the market seemed to have crashed in most of the occasions.
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Note: Crowdwisdom360 collects predictions and data from across the network and does not have an inside look at likely trends in the index or individual stocks. Consult a registered investment advisor to guide you in your financial decisions.
