What Has Been Happening With The Crypto Market Today? What Caused the Market to Collapse? Everything You Should Know
There have been a number of market movements that could have led to the bitcoin price decline. Read on to learn more about today's crypto meltdown.
On Saturday, cryptocurrency speculators dumped their digital assets as the global crypto market fell by nearly 17%. The highest depreciation since September was $2.4 billion, which was liquidated earlier today. Bitcoin, the world’s most valuable cryptocurrency, has dropped to $47,164.64, a drop of almost 16 percent in the last 24 hours. Ethereum, like other cryptocurrencies, has plummeted by almost 15%, falling as low as $3848.23 in a single day.
The total crypto market cap plummeted from $2.6T on Friday to $2.07 on Saturday, despite the market having streamlined since the precipitous dip early this morning. Last month, the overall market value reached $3 trillion for a brief moment. The price of Bitcoin is rarely accompanied by a price reduction in other cryptocurrencies, which is an observable tendency. There have been a number of happenings in the worldwide market that could have influenced today’s crypto meltdown.
What has occurred to the cryptocurrency market today?
Since September 2021, the largest evaporations have occurred. In the last few months, the cryptocurrency market has seen one of the greatest wipeouts, with assets worth $2.4 billion being liquidated. The trading volume of cryptocurrencies on the global market has increased by 80 percent in the last 24 hours to over $218 billion. On December 4, the total market capitalization of crypto fell to $2.07 trillion, a drop of approximately 17% from the market capitalization on December 3, 2021. Just put, investors have been trading to secure profits or simply exiting the market to avoid catastrophic loss in the event of a ban or other restrictions owing to the depreciation of digital assets.
The following are some of the likely causes of the crypto collapse.
Why is crypto falling is a frequent subject among netizens right now? The crypto market fall could have been caused by a number of things. In most areas of the world, the year is coming to an end, and the Christmas season is just around the horizon. Investors who have invested money into a number of digital coins would like to make a profit before the holidays. Furthermore, the erratic position of governments throughout the world seeking to ban cryptocurrencies with various exceptions may have frightened investors. The emergence of a new strain of the Coronavirus, known as Omnicron, is another element that has an impact on the global stock market as well as the cryptocurrency market. These are some of the variables that could explain why the crypto market has crashed today.
The Indian government opposes Bitcoin and other privately held cryptocurrencies.
The Indian cryptocurrency market has been on a downward trend for the past month. These declines have been accompanied by public pronouncements from the Indian government prohibiting the use of private cryptocurrencies. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is set to be introduced in the Indian Parliament’s Winter Session. As the session approaches, panicked investors are withdrawing their investments, causing severe drops. Nirmala Sitharaman, the country’s Union Finance Minister, has stated that the government has no intentions to recognize Bitcoin as an official currency.
