October 4, 2022

Why Crypto-Market is Trending down

As crypto market is going downward to 21000$ since 2020 because investors are selling their assets. According to Wall Street Journal Bitcoin stood at 18% loss at the price of 21000$.

Why crypto-Market is going down

Crypto-Market is trending down cause nearly $200 billion had been taken out from overall crypto-market. Bitcoin’s overall market cap fall bellow 1 trillion for the first time since 2021.

This is all happening due to the increase in interest rate. US federal reserve is expecting to hike interest rate to control those prices. The crypto market has been under pressure from the Federal Reserve, hiking the interest rates to combat inflation over the past few months. Bitcoin, Ethereum, and most cryptocurrencies suffered losses over the weekend after a broad sell-off following the data showing US inflation hitting a 40-year high,” said  Edul Patel Co-Founder and CEO of crypto investment platform Mudrex.

Terra Luna crash

One of the main reason behind this biggest crypto-market crash is collapse of Terra Luna stable coin UST since May.

crypto-market

Celsius

One thing that is adding fuel on fire is that Celsius one of the crypto exchange is pausing all withdraw and transfer of assets due to such bad market condition.

Celsius with owns its own coin CEL is down more than 50% so investors are concerned.

“The Celsius situation is definitely adding fuel to the fire,” Ayyar said.

“Broadly the markets were already under pressure from inflation concerns and the interest rate hikes, but with crypto such contagion events could cause outsize declines, given the market is tightly interlinked these days with a variety of inter-connected protocols and businesses.”

Leave a Reply

Your email address will not be published.