Why Did Crypto Crash Today? Here Are the Reason Behind it

Along with other leading non-stablecoin cryptocurrencies, Bitcoin and Ether experienced a slump in the early hours of the Asian morning, with Bitcoin temporarily falling below $28,500 and Ether falling below the critical $1,800 barrier. The market’s pessimistic attitude was most heavily felt by the smaller cryptocurrencies, such as Dogecoin, Solana, and Ripple.

The Federal Open Market Committee minutes from July 2023 showed that the Fed was concerned that inflation problems would continue more than expected, necessitating more tightening, and Bitcoin prices rose marginally as a result. The central bank also recognized the importance of avoiding an overly restrictive monetary policy due to the risks involved.

Reason for the Decline in the Crypto Market

Multiple causes contribute to the current market downturn. The U.S. stock market, like markets throughout the world, saw a modest comeback but has had trouble keeping its gains. This week’s prevalent sense of concern can be attributed in part to Chinese economic statistics, rising bond yields, and high valuations. The reduction in interest rates by the People’s Bank of China had no effect on market sentiment.

Curiously, the market crash occurred right after Binance said it will no longer offer its buy/sell service, Binance Connect. The market as a whole dropped as a result of this strategic shift, which was made to concentrate on core items and long-term goals. While this service only supported 50 different cryptocurrencies, it had significant consequences.

Coinglass data shows that on April 5th, 2018, there were massive sell-offs totaling $129 million, causing over 63,000 traders to quickly liquidate their positions. A noteworthy purchase order for Ethereum (ETH) totaled $2.34 million. In the previous day, investors dumped large amounts of Dogecoin, Litecoin, XRP, Solana, and Shiba Inu, among other cryptocurrencies.

Cryptocurrency price drops are expected to continue, according to market experts. And now that Bitcoin accounts for more than half of the cryptocurrency market, competing tokens face headwinds. This shift in dominance may spell more trouble ahead for other cryptocurrencies.