Main Reason why Bitcoin & the Cryptocurrency Market Crashed today

Vinod Dsouza
bitcoin btc
Source: Unsplash

The cryptocurrency market faced yet another bloodbath as Bitcoin nosedived below $37,000 today. BTC reached a new 24-hour low of $36,376 straightaway dipping more than $3,000 in the day trade. Warning bells regarding new slumps were ringing for weeks and the market caught up with it. The market crash is so harsh that $140 billion worth of investments are wiped away in the last 24-trading hours.

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Several other altcoins dipped double digits as BTC dragged the entire market down along with it. The vigorous drop also dented meme-tokens, as they plummeted double digits and reached new monthly lows in the indices.

Just a week ago, Bitcoin showed improvements and was trading at $45,000. However, the spike was temporary, as both the stock and crypto market started on the back foot this year. The market was mostly down and also traded sideways the rest of the days. No major spike in price is shown and a bull run is mostly off the charts.

Mike Novogratz, the Bitcoin billionaire had also predicted last month that being a crypto investor in 2022 will be the hardest job. “This will be a year where people realize being an investor is a difficult job,” he said in a tweet.

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Why is Bitcoin and the Cryptocurrency Market Down?

The tumulus market performance is a cocktail that was brewing since the beginning of the year. The Russia-Ukraine conflict is among the primary reason for the market’s downtrend. Latest reports state that Russia has ordered troops to enter two different rebel-controlled regions in Ukraine.

On the other hand, the US and the EU continue to threaten Russia’s President Vladimir Putin. The Biden administration is simultaneously working towards placing sanctions on Russia to block their economy. Nonetheless, the sanctions and warnings seem to be little or not effective against Russia.

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At press time, war tankers have made their way into eastern Ukraine and the rebels have armed up for defense. At present, no firing and military bombings have been reported. If firings breakout and turn into a full-blown war, the market could dip further and cause another round of panic-selling.

Apart from the U.S stock market, the majority of the stock markets around the world are trading in the red. Bitcoin and the crypto market might take more time to recover and reach their previous highs.