The post Why BTC, ETH, XRP & Altcoins Are Dropping? appeared on BitcoinEthereumNews.com.

The crypto market today is experiencing significant turbulence, with major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) facing notable declines. This downturn has sparked widespread concern among investors, with many wondering what’s driving this bearish trend. Thus, we have listed the key factors contributing to the market’s current state, focusing on Bitcoin, Ethereum, and altcoins. Bitcoin Miners Under Pressure Amid Declining Crypto Market Today Bitcoin, the market leader, is also facing significant headwinds. The revenue per terahash for Bitcoin miners has dropped to a 12-month low of 4 cents, down from over 10 cents earlier in the year. This sharp decline in mining profitability is due to several factors, including the upcoming halving event, low on-chain activity, and increasing network difficulty. The Halving event in April 2024 reduced the block reward by 50%, putting further pressure on miners. As a result, smaller mining operators are being forced to either shut down or consolidate their operations. This consolidation is likely to lead to a decrease in network decentralization, which could have long-term implications for Bitcoin price. Also, as the crypto market declined today, FUD grew around Binance’s suspicious transfer of 75,117 BTC worth $4.69 billion. Out of this, the crypto exchange shifted 45,000 BTC to an unknown wallet, sparking speculations. However, it was then clarified that it was an internal transfer. In addition, long liquidations in the market currently stand at $112.25 million, according to Coinglass. While this figure may not seem overly significant, it reflects the heightened market uncertainty that is contributing to the overall bearish sentiment. The crypto market today is also reacting to profit-taking behavior. Last week, Bitcoin rallied past $65,000 amid optimism surrounding potential Federal Reserve rate cuts. However, traders have been quick to take profits, leading to the current slump. Source: Velo Data Moreover, BTC 6-month…

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Filed under: News - @ August 27, 2024 7:15 pm