Crypto Market Turbulence: Major Drop in Prices Raises Concerns
London: 05 October 2023 (TraderMade): The cryptocurrency market had a rough time at the beginning of this week. The total value of all cryptocurrencies dropped by more than 9%, landing at around $1.04 trillion. The two biggest cryptocurrencies, Bitcoin and Ethereum, took a hit, losing more than 10% in just 24 hours.
Bitcoin's price is now hovering around $27,000, down from a critical support level of $28,000 earlier today. Ethereum also dived, falling to about $1,600, breaking through the $1,700 support level. When these significant cryptocurrencies stumble, they often bring down the rest of the digital coin market.
As expected, other well-known cryptocurrencies like XRP and Shiba Inu also suffered, losing more than 15% of their value today. XRP dipped below the critical $0.50 mark, and Shiba Inu dropped below $0.000008. Many altcoins spiral downward as money flows out of the cryptocurrency space.
Experts have offered a few reasons for this widespread crypto sell-off:
Seasonal Slowdown: August is historically a slow month for all markets because people are on vacation. Lower trading activity can make price drops more severe. It's also been noted that crashes occurred in August, several months before Bitcoin's halving event in April next year.
Breaking News: Today, Elon Musk's SpaceX sold all its Bitcoin, worth $373 million. This prominent player leaving the market likely made smaller investors nervous.
Technical Trouble: Bitcoin has struggled to stay above $30,000 for some time. Decisively dropping below this critical level triggered automatic selling and forced those with risky bets to exit, causing a sharp fall.
The recent weakness in the crypto market has made investors unsure. Some think it's a temporary setback, while others fear it might begin a more profound decline. Choose us as your data partners and stay updated to make informed decisions.
