- These incidents do not deter seasoned investors.
- The bear market began in early November.
The global cryptocurrency market has fallen nearly 17% in 24 hours. Experts expected a crypto market meltdown in December, but most investors were surprised by the magnitude. The bear market began in early November, and the bulls retreated last week owing to large crypto-related metaverse project announcements.
FUD around the new Covid version and a stock market crisis have prompted crypto values to fall below their projected support zone. In two months, Bitcoin has fallen below $50K. Earlier today, bitcoin was trading at $43.5K, its lowest since September. BTC has subsequently climbed back up to $47K.
The big surprise was Ethereum. ETH is down about 15% in the previous 24 hours. Despite strong support over $4K during November’s bad market, the cryptocurrency fell to $3,497 earlier today, its lowest since September. ETH is already back up to $3.9K.
Litecoin has taken the greatest hit among the top 20 cryptocurrencies, falling almost 25% in the previous 24 hours. Sandbox (SAND) and Decentraland (MANA) lost over 20% in today’s collapse.
Panic Selling the Main Reason
Panic selling is the main cause of today’s crypto market fall. Earlier this week, American billionaire investor Charlie Munger slammed cryptocurrencies, claiming he wished it had never existed.
The $10 million BadgerDAO attack and India’s crypto regulatory intentions fueled panic selling. Concerns were also raised about the new Covid-19 type, which might harm the world economy currently reeling from the epidemic.
These incidents do not deter seasoned investors, but newcomers succumb to the FUD, causing a massive crypto sell-off. But not everyone sees the crypto market meltdown as a bad thing. Tron and El Salvador’s CEOs have already purchased the downturn, adding Bitcoin to their wallets.