The crypto market crashed today, alts such as Avalanche and Cardano tumbling more than Bitcoin. The world’s leading crypto lost more than 7% to $39,417. Remember, BTC has never crashed beneath $40K since 16 March.
Ethereum, the 2nd-largest digital coin by market value, lost over 6% to lose the $3,000 mark. Also, the meme crypto market suffered, with DOGE and Shiba Inu crashing nearly 10% each.
Meanwhile, tokens such as Avalanche, XRP, Terra, Solana, and Cardano lost 6-11% of their values over the past 24 hours. Also, the previous 24 hours had the global cryptocurrency market capitalization dropping 4.61% over the past day, hovering around $1.85 at this publication (Coinmarketcap data).
BitMEX co-founder Arthur Hayes believes BTC would plunge towards $30K by June. He added that such developments would see Ethereum hitting $2,500 lows. Hayes stated that BTC and Ether boast a high correlation with NASDAQ 100, and NDX tanking will drag the crypto market down.
Crypto assets dropped in response to stiff monetary policy. Meanwhile, the market has struggled over the past sessions. Even the last week’s Miami BTC conference couldn’t alter the markets’ downtrends.
Teong Hng of Hong Kong’s Satori Research stated that Fed Reserve tightening by 0.5% and the $95B monthly balance sheet run-off left the crypto market tumbling lower. That’s according to Bloomberg reports.
However, BTC’s tendency to act in sync with digital products like U.S tech stocks makes the current fall less of a shock following a challenging week in the American markets. Meanwhile, Bitcoin’s correlation with NASDAQ 100 hovers at record levels.
Coinbase head of research David Duong stated that investors are trimming their holdings ahead of the U.S tax deadline in mid-April. He sees trends similar to 2021, saying that market participants sold digital tokens last year to complete tax-associated payments. Duong added that Fed’s interest rates hikes also weigh on risky markets. The overall cryptocurrency spectrum flashes red today.
What are your opinions about the ongoing crypto market reactions? When will the turmoil end? Feel free to share your thoughts in the comment area below.