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Why is the cryptocurrency market down today? $140 million cleared in last 4 hours
Cryptocurrency enthusiasts find themselves on a roller coaster ride as the cryptocurrency market crashed over the past day, leaving traders scratching their heads in confusion. Despite a surge in positive sentiments towards cryptocurrencies in recent months, the Bitcoin price it stumbled in an attempt to maintain its bullish pace, stumbling on the significant threshold of $74,000.
The latest market data paints a grim picture, with Ethereum (ETH) on Tuesday, seeing a drop of more than 5%, falling to a low of around $2,962. To weather the storm of volatility, more and more investors are shifting their attention from the unpredictable altcoin market to the relatively stable realms of both stablecoins and the Bitcoin market.
This change is reflected in Bitcoin’s dominance, which rose 1% to around 55.16% on Tuesday.
Liquidations increase as volatility spikes
As the cryptocurrency landscape becomes increasingly volatile, the consequences are palpable, with over $100 million of long traders liquidated in the last four hours alone, adding to a staggering tally of nearly $300 million wiped out in the last 24 hours.
The turmoil in the cryptocurrency sphere is set to intensify in the coming days, with all eyes on high-impact events, particularly the upcoming release of crucial data from the US Federal Reserve on interest rates and the Federal Open Market Committee (FOMC) on Wednesday.
Furthermore, the impending sentencing of former Binance CEO CZ threatens to further turbulent market waters.
Is there still hope?
The cryptocurrency market is already in a macro bull cycle following the recent Bitcoin halving and the approval of BTC spot ETFs in Hong Kong and the United States. As a result, a possible rebound in cryptocurrencies could push the price of Bitcoin to a new all-time high (ATH) any time in the coming months.
Also check: Why is the price of Bitcoin (BTC) down today? Here are the main reasons
With volatility on the rise, is it time to change your cryptocurrency investment strategy?