Crypto Market Struggling as Bitcoin and Ethereum Shed Value
The crypto market has been in a tailspin over the past few days, with Bitcoin and Ethereum leading the way down. Prices have fallen sharply, with the market meltdown catching many investors by surprise.
Within just 24 hours, between April 10 and April 11, the price of Bitcoin decreased 15%, dropping below $40,000 for the first time since March 15. Ethereum followed suit, declining 14% and going below $3,000 for the first time since March 23.
This is all part of a broader trend that saw the crypto market tumble 8.5% over 24 hours, hitting a $1.84 trillion market cap. So, what caused this market nosedive? There are a few theories floating around, but the most likely culprit is a combination of several factors.
The price of Bitcoin has historically been connected to the price of other cryptocurrencies, but as of recent, it has been correlated with the stock market as well. When these markets take a turn down, so does the price of Bitcoin.
The stock prices have recently been affected by various factors, including the ongoing conflict in Ukraine, growing inflation concerns, and a fresh round of COVID-19 lockdowns. The S&P 500 closed down 1.7%, while the Nasdaq dropped 2.2% in its value, and the Dow Jones Industrial Average ended Monday’s session down 1.2%.
When the stock market takes a dip, this often pushes investors to sell off their assets, which is likely what happened with Bitcoin and Ethereum as well.
The crypto market is in a rough state right now, and it’s hard to say where things will go from here. Bitcoin and Ethereum have both been hit hard. However, price volatility is hardly a new phenomenon in the world of cryptocurrencies.
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