In the past 24 hours, crypto prices have suffered a significant drop. The price of Bitcoin (BTC) quickly fell from $71,000 to $66,000. While Bitcoin has recovered somewhat, many altcoins remain heavily in the red, with losses reaching double digits in some cases.
What is causing this sudden drop in the crypto market?
A major correction
A few days ago, on April 11 and 12, investor interest was piqued by a significant rally in Bitcoin (BTC), which appeared to be heading for a break above $71,000, with a possible target of surpassing the previous high of $73,600. However, this advance was abruptly interrupted and Bitcoin plummeted to a low of $66,000, a drop of more than 7%. Although the price recovered slightly to $67,490, Bitcoin is still 4.2% lower than 24 hours ago.
Major altcoins such as Ethereum (ETH) and Solana (SOL) also registered significant losses, with declines of 6.3% and 10.9% respectively over the last 24 hours. Other cryptocurrencies such as Uniswap (UNI) and Bitcoin Cash (BCH) experienced even steeper declines, with losses exceeding 20%.
Why has the crypto market fallen?
The crypto market has recently experienced a significant decline, largely due to economic uncertainties and geopolitical tensions. Declining confidence in the US economy, reinforced by recent events in the Middle East and warnings from President Biden about possible attacks by Iran on Israel, has had a direct impact on financial markets.
In the United States, stock markets fell, with the S&P 500 and the Nasdaq 100 both losing almost 2% within a day. This negative mood in the stock markets coincided with an increase in liquidations in the crypto sector. Traders, forced by market conditions, had to liquidate their positions en masse, leading to the largest liquidation wave of the month. Within 24 hours, a total of $850 million in mainly long positions were forcibly liquidated.
These developments underscore how external economic factors and geopolitical risks can leave deep scars in the crypto market, resulting in significant financial shifts and uncertainty among investors.
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Source: https://newsbit.nl/altcoins-fors-in-het-rood-wat-drijft-de-plotselinge-koersdaling/
