Connect with us

Hi, what are you looking for?

Economy

Crypto crash: Why are Bitcoin and altcoins like Ethereum, XRP, Cardano, HYPE going down?

A crypto crash is happening, with Bitcoin plunging below $115,000, and most altcoins like Ethereum (ETH), XRP, Cardano (ADA), and Hyperliquid (HYPE) going down by over 4%. This article explores some of the top reasons why the crypto market is going down today.

Crypto crash is happening as investors sell the news 

One reason for the ongoing crypto crash is that investors are selling the Federal Reserve interest rate cut news.

The Federal Reserve decided to slash interest rates by 0.25% in the last meeting on Wednesday, with officials hinting that more cuts will be coming in the next meeting.

Stephen Miran, the newest Fed official who was appointed by Donald Trump, voted to cut interest rates by 0.50% in this meeting, a move that likely caught the attention of the president, who may appoint him as the Federal Reserve chair.

Federal Reserve interest rate cuts are bullish for risky assets like cryptocurrencies, which explains why most of them rose before and after the Federal Reserve slashed interest rates on Wednesday.

Now, however, investors are selling the news after the Federal Reserve slashed interest rates as they now wait for the next important catalyst. This is a common occurrence in the market, where investors sell assets after a major event.

Soaring liquidations in the crypto market

The crypto market is also soaring as investors react to the soaring liquidations in the crypto market.

CoinGlass data shows that liquidations jumped by almost 400% on Monday to over $631 million. Ethereum liquidations jumped to over $182 million, while Bitcoin ones soared to $69 million. Other top liquidations were coins like Dogecoin, Solana, XRP, and Aster.

Over 218,000 traders were liquidated on Monday, with the biggest one being a Bitcoin trader whose trades worth over $12 million were liquidated. Historically, crypto prices plunge when investors are being liquidated, as this forces them to sell their assets to cover.

Bitcoin price crash and risky pattern 

BTC price chart | Source: TradingView

Meanwhile, the crypto market is also plunging because Bitcoin has failed to move above $117,000 despite the recent interest rate cut in the United States and other countries.

Worse, as the chart above shows, Bitcoin price has been forming a huge rising wedge pattern on the weekly chart, which may lead to a prolonged bear market. If this happens, it means that most cryptocurrencies will drop as well because of the correlation that happens between Bitcoin and the crypto market.

The post Crypto crash: Why are Bitcoin and altcoins like Ethereum, XRP, Cardano, HYPE going down? appeared first on Invezz

You May Also Like

Latest News

MILAN (Reuters) -Italian billionaire Francesco Gaetano Caltagirone has emerged as a leading player in the reshaping of Italy’s financial sector that is currently under...

Latest News

MILAN (Reuters) -Italian billionaire Francesco Gaetano Caltagirone has emerged as a leading player in the reshaping of Italy’s financial sector that is currently under...

Editor's Pick

Oil prices were mostly flat after rising earlier in the session on Thursday due to a fall in US inventories.  According to the US...

Latest News

MILAN (Reuters) -Italian billionaire Francesco Gaetano Caltagirone has emerged as a leading player in the reshaping of Italy’s financial sector that is currently under...

Disclaimer: Bullsmarketdominators.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2024 Bullsmarketdominators.com