Altcoins
Why did Bitcoin and the crypto market crash today?
The global crypto market saw a sharp crash today, April 13, with the majority of tokens trading in the red zone. A look at the market as a whole looks like a bloodbath. Investors were already optimistic about the market recovery 24 hours ago, when Bitcoin was trading above $70,000, but they have now plunged.
This development has created tension among participants as investors hastily sold their holdings on several crypto exchanges, leaving community members with speculation about the cause of the rapid decline. Therefore, the global crypto market cap has fallen by a significant increase of 7%, reaching $2.45 trillion in the last 24 hours. However, the total trading volume saw an increase of 77%, reaching $140.25 billion.
Investor confidence has dropped significantly, as shown by the Cryptocurrency Fear and Greed Index, a statistic used to measure cryptocurrency market sentiment. According to Alternative datathe metric now reads 72, which is a 6-point drop from yesterday’s 79. A shift from “extreme greed” to “greed.”
Source: Alternate
Global crypto market ends week in the red
According to CoinMarketCap data, Bitcoin, the world’s most popular cryptocurrency, has lost 4.7% of its value over the past day, now trading at $67,380. Additionally, its market capitalization declined by almost 5% during this period, reaching $1.32 trillion. BTC trading volume spiked to $48.2 billion, an increase of 61.4% over the past day.
The price of Ethereum (ETH) also suffered greater loss per data from the aforementioned tracker. Over the past 24 hours, ETH is down 7.3% to trade at $3,259. Additionally, its market capitalization fell 8% to $391 billion. However, activity involving ETH, as measured by its trading volume, jumped 88% to $25.2 billion.
Other altcoins on the top ten list like Solana (SOL), XRP, and Dogecoin (DOGE) lost 12.5%, 11.11%, and 13.13% of their values, respectively. At the time of writing, they are changing hands at $151, $0.5, and $0.17, respectively.
Trending tokens like Ethena (ENA) and Dogwifhat (WIF) are not left out. Data from CoinMarketCap shows that Ethena (ENA) is now trading at $1.30, signifying a notable 10% decline over the past day. Similarly, Dogwifhat memecoin fell 21.86% during the observed period to trade at $2.67.
With those price updates, investors are wondering why the market has turned around. Let’s take a look.
Why did the market fall today?
Observations indicate that increased economic uncertainty and geopolitical concerns contributed to the market collapse. Thus, cryptocurrencies joined the fall without delay while traditional markets trembled. In response to new inflation statistics showing a third straight month of acceleration, U.S. stock markets saw a decline along with this stock market collapse. Any lingering hopes for an immediate interest rate cut from the Federal Reserve were dashed by this higher-than-expected Consumer Price Index (CPI) data, casting doubt on the notion that inflation was almost under control.
Meanwhile, as the crypto market eagerly awaits the next Bitcoin halved which should take place between April 19 and 20, hopes of a rebound continue to hover. Experts predict that the price of Bitcoin will exceed $80,000 after the halving. Some investors see this as an opportunity to buy cryptocurrencies at discounted prices, while others lose confidence and exit their positions.
In the end, the crypto market is collapsing today was caused by major economic uncertainties, a change in investor confidence, and a pre-market collapse ahead of the next Bitcoin halving event.