Bitcoin, Ethereum, Cardano Plunge, Why Are Crypto Crashing Today?

The crypto market is crashing hard. The Bitcoin price has fallen by close to 6% in the last 24 hours. It is currently trading at $18,826. Meanwhile, despite the Bellatrix upgrade, Ethereum is showing extremely bearish movement. ETH has fallen over 7% in the last 24 hours and is currently trading at $1531.

The entire cryptocurrency market is in a rut. Yesterday, altcoins showed strength despite a mediocre showing from Bitcoin. However, almost all cryptocurrencies are currently falling. While BNB is down 6%, Cardano has fallen close to 8%. Polygon’s MATIC is down more than 10%.

Meanwhile, Ethereum Classic (ETC), which showed extremely bullish movement, is down close to 15% in the last 24 hours.

Why is the crypto market crashing?

Much of the current crypto crash can be attributed to macroeconomic factors. Bitcoin price fell as the dollar showed renewed strength. The dollar jumped to a 20-year high. The Bloomberg Dollar Spot Index experienced record highs. Similarly, US 10-year Treasury bills have shown strength in anticipation of the Fed’s quantitative easing.

The traditional market also fell in response to the dollar’s strength. The S&P 500 fell 0.4% while the NASDAQ 100 fell 0.7%. Gold prices also fell in response to the dollar’s strength.

Crypto is heavily influenced by macroeconomic factors and the performance of the traditional market. Coinbase Research highlighted that crypto is highly correlated to the general markets, especially to tech stocks and tech-oriented NASDAQ.

It is also possible that investors are cautious about the merger. The Ethereum merger is an extremely big event and is likely to have a huge impact on crypto prices. A successful merger can lead to bullish movement. However, problems with Ethereum after the merger could be disastrous for the market.

Major upcoming events

The whole market is waiting for the consumer price index data to be released on September 13. Good CPI data can be a boon for the crypto market. However, the market will also be looking for the Fed’s intention from several key speeches lined up this week.

Nidhish is a technology enthusiast, who aims to find elegant technical solutions to solve some of society’s biggest problems. He is a strong believer in decentralization and wants to work on the mainstream adoption of Blockchain. He is also big on almost every popular sport and loves to talk about a wide range of topics.

The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.