Crypto Market Felt Tremors Today With Bitcoins and Altcoins Crashing

Crypto Market Continues the Downward Trend This Weekend
  • Ethereum was trading at $3,471, down 8.67% from its 24-hour high.
  • The value of Bitcoin today was $43,000, 6.43 % lower in 24 hours.

Prices for major cryptocurrencies like Bitcoin and Ethereum plummeted substantially. This was Due to investors sought to lock in gains in the face of global unrest. Today morning, the price of Bitcoin, the world’s most popular cryptocurrency, had fallen to $43,000, or 6.43 percent lower just 24 hours before.

Panicked investors booked profits, sending Bitcoin’s market value plummeting to $815 billion and the 24-hour trading volume surging to $1.93 billion. The value of Ether, Ethereum’s native token, also fell.

BTC/USDT: Source: TradingView

Ethereum was trading at $3,471, down 8.67% from its 24-hour high. Its 24-hour trading volume was $1.47 billion, with a market capitalization of $408.51 billion.

Reasons for the Crash of Cryptocurrencies

After the Kazakh government’s decision to allow market rates to dictate gasoline pricing in the nation, the price of liquified petroleum gas doubled, provoking huge demonstrations over the economy and human rights.

ETH/USDT: Source: TradingView

A sharp sell-off in the Nasdaq index on Wednesday (January 5) coincided with the latest decline in Bitcoin’s price, which came as the US Federal Reserve prepared to abandon its coronavirus pandemic monetary policies through interest rate hikes and a possible reduction in securities in order to shrink its balance sheet.

Popular investor Michael Novogratz believes the price of Bitcoin could fall below $38K-$40K. Especially, after this week’s Federal Reserve-inspired selloff. Furthermore, Michael pointed out, Bitcoin is still a risk asset, and that’s why it took a beating in Wednesday’s sell-off, which saw the Nasdaq index drop by 3%.

An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.