Why is Crypto Market down today, Here's the reason

The global market cap shrinking from $1.10 trillion to $1.02 trillion had stirred the crypto holders badly
Why is Crypto Market down today, Here's the reason

Digital Currency aka Cryptocurrency markets yet again crashed today to a new low this year. The global market cap shrinking from $1.10 trillion to $1.02 trillion had stirred the crypto holders badly. The global fall of one trillion in the crypto market indicates that almost every top coin is now worth half or even less than their all-time highs.

Here’s why the market is down
The apparent reason behind the mega fall of this crash could be the massive sell-off by investors amid heightened inflation fears.

Russia Ukraine Conflict

The ongoing conflict between Russia and Ukraine had pushed inflation to an all-time high, and thus investors now are avoiding holding risky assets, thus affecting the stock markets as well.

Image Source: Al Jazeera

Downfall in the Economy of the Superpower-

The USA, witnessing all-time high inflation over the past 40 years is now standing on the verge of depression. It must be noteworthy that the USA is one of the largest markets for cryptocurrency, and thus, such a downfall had pushed the crypto market into a pit.

Srilanka Crisis-

Economic crisis in Srilanka has added yet another tension to the global chart. The crypto market, which itself was a bit inconsistent in nature is now falling down the aisle due to the global imbalance across the world.

Image Source: Associate Press
Cryptocurrency and their Values
Bitcoin, the biggest and most popular cryptocurrency too fell to $25,586 this time, other coins like Ethereum, etc had already been struggling since the weekend. Ethereum witnessed its lowest level in the last 14 months and is currently trending at a value of $1350. Solana too has witnessed a dip of 30% and is hovering around the $29 mark. As believed by experts, the core reason behind this dip is the reduction in the investors’ will to take risks. Investors are now avoiding holding risky assets. As known widely, crypto is more uncertain and volatile than the stock market, and thus it is considered as one of the most volatile instruments for investment purposes.

What’s next?

Since the crypto world is still new to commoners, thus, it continues to behold such plunges. However, since the American market is observing a record downfall this time, that’s the reason why the market had become the talk of the town. Had all countries made some clear rules and regulations regarding cryptocurrency, it might be possible that the market would be in a much better situation and control.

Why is Crypto Market down today, Here's the reason
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