Why Crypto Market Has Crashed Today?

The world’s total crypto market cap is at $2.6 Trillion after a dip of 5.85%, but the market trading volume is up by $197.23B after a hike of 43.85%. Many cryptocurrencies have lost their value accumulated over weeks, including Bitcoin. It has dropped from its ATH value of $73,750.07 to $67,007.19 after an 8.7% dip. So, what is happening with the market? Let’s discuss that in this blog.

Top Reasons Why the Crypto Market Dropped

The crypto market has to deal with sudden bear attacks, even in bullish situations. Most crypto has shown a similar factor of facing a dip from yesterday. The top crypto investors and analysts suspect a little step back before aiming for high. There were three main reasons for the crashed market: – Liquidation issues, market correction, and Panic Selling.

Liquidation Issues

The Coinglass data revealed substantial liquidation issues for cryptos like Bitcoin, Ethereum, and Solana. Till now, Bitcoin’s bullishness has helped the altcoin performance, but as it has slipped from the $70K range, the altcoins seem to follow that as well. Over $666 million worth of crypto has been liquidated in the market. Out of which, the long traders are responsible for $531 million.

Talking of Bitcoin, liquidation hit $246.66 Million, out of which $195.61 Million is concerned with the long positions, and the remaining $47.05 belongs to short positions.

Ethereum Dencun upgrade has led to the price liquidation for the coin, where a total comes out of $116.07 Million in liquidation. $94.86 Million is subjected to long-term investors, whereas $21.21 Million is for short-term traders.

Balancing The Crypto Market

After years of low profits, crypto has finally got a comeback where Bitcoin, meme coins, and rest altcoins perform exceptionally well. Ethereum has surged over the 4k mark earlier but has dropped to $3,678.58. It is the same with many other cryptos at this moment. After a successful day in the market, a slight fall is quite common, calling it the market balance.

Also Read: Ethereum Dencun Upgrade: Everything You Need To Know

Analysts like Captain Faibik have predicted a market correction before the Bitcoin halving happens. He has predicted Bitcoin price to fall to as low as $60,000 before lifting to target another ATH value.

Panic Selling

As the market has hit its best phase in three years, investors don’t want to miss out on the best value. Many altcoins have hit their ATH value in just the last few days, and from that, the prices might have fluctuated here and there, causing a panic selling situation. People do not want to miss the best price they have right now rather than putting the selling offer on hold for months to make a profit. Panic selling happens when investors start selling their tokens in fear that the market might crash or fall. This sequence of selling eventually ends up with price drops.

The market hasn’t completely dropped and can make a comeback soon. It is an opportunity for short-term traders to make the most out of this market.

Conclusion

The crypto market has many volatility factors where the price surge and sink can happen anytime, which can be managed to bear the maximum profit and minimal loss with technical analysis. Along with that having proper knowledge of the crypto market can help out. As of now, many cryptos have faced a downfall from their previously high value, but it might be a minor fall. There are chances that these cryptos might be able to make a comeback soon.

Read more about the Ethereum Rich List Revealed

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