Why Did Crypto Crash Today?
Why Did Crypto Crash Today: The crypto market has crashed further, here are a few reasons why the market crashed and whether it will crash further.
Since the December of 2021, the crypto market has been trading lower after breaching $3 T in the total market cap. One of the main reasons for the market turning negative back then was the US Fed’s announcement of increasing the rate.
The market further crashed in the month of February 2022, which is when the Russia-Ukraine conflict started. However, the market recovered to some extent in March but with US Fed’s new policy crypto market retreated.
The month of May-June was the time when the Terra Luna crisis happened. This was the time when the crypto market experienced a major blow. The market from over $3T in the winter of 2021 fell below $1T. All the major and minor cryptocurrencies crashed. Bitcoin went below $20,000 and Shiba Inu was below $0.000010.
However, there was some recovery and the market had been trading positively before the recent crash. The latest crypto market crash is due to the strengthening of the US dollar. The latest US financial data led to the US 10-year treasury bills soaring higher. The strengthening of US dollar and the rising of treasury bills indicate the US Fed furthering tightening the rates.
This anticipation of furthering tightening of rates by the US Fed led to both commodity and the crypto market crash. NASDAQ closed around 1% lower while S&P 500 fell by 0.4%.
Why Did the Crypto Crash Today: The Major Cryptocurrencies in the Last 24 Hours
Solana is once again the biggest loser and it has lost around 14% in the last 24 hours. Bitcoin is down nearly 9% and Shiba Inu is down 5%.
Why Did Crypto Crash Today: Will the Market Crash Further?
The reason for the crypto market crash was the US CPI data. The inflation data was worse than expected. After being high for a couple of months, it was expected that inflation to go down but instead, the inflation data was completely the opposite. The inflation rose 8.3% as compared to last August.
The crypto market is on sticky ground, the service market increased massively and the dollar strengthened indicating a further increase in the interest rates. Added to added the upcoming Consumer Price Index number becomes more crucial for the market. The CPI is expected to remain lower which may lead to a crypto market crash further. Additionally, more will depend on US Fed’s announcement. But it is more likely expected that the market may crash once again.
Why Did Crypto Crash Today: Read: Shiba Inu Price Prediction