Crypto investors were baffled by the events that happened this Tuesday. The cryptocurrency market lost almost USD 450 Billion in market capitalization within few hours. Some altcoins managed to remain profitable for the day like Solana (SOL), which gained 12%. On the other hand, the cryptocurrency market lost around 10% on average. Why did the crypto market crash? In this article, we’ll have a closer look at why did this sudden crash happen.
Why did the Crypto Market Crash today?
1- JP Morgan issued a Bad Memo to its investors
JP Morgan warned its investors 1 day prior to the crash about buying altcoins during this bull run. They claimed that retail traders were hyping up prices during fundamental advancements in the technology (NFTs, scalable blockchains…). This note created a negative sentiment in the crypto sphere, prompting a heavy sell-off.
2- El Salvador Announced a Bad Start with its crypto integration
The cryptocurrency market started taking a hit as El Salvador’s wallet experienced technical difficulties within hours of its debut. This forced President Bukele to announce that they would temporarily “go offline”. This bad start in their crypto integration scared investors and initiated a sell-off, which translated into a snowball effect on the entire market. Negative news and strong selling pressures have very bad effects on cryptos, especially because of their high volatility.
3- A Price Adjustment was bound to happen
The crypto market rallied for an extended period now with no signs of any retracement in prices. This extended uptrend is definitely scary, especially when prices rise by more than 50% in less than 1 month. Green candles can be seen for most cryptos consecutively. Coupled with bad news, this ticking bomb would definitely explode once profit-takers enter the selling game.
The Crypto Market at a Glance
In the past 24 hours, most cryptocurrencies are in the red. The market as a whole lost more than 10%. The top losers are Filecoin (FIL), MDeX (MDEX), and Ethereum Classic (ETC) all losing around 20%. On the other hand, we can notice top gainers on such a red day like Near Protocol (NEAR) and Solana (SOL) making 22% and 11% respectively.
1- Bitcoin (BTC) : – 9.2 %
2- Ether (ETH) : – 12.7 %
3- Cardano (ADA) : – 16.6 %
4- Binance Coin (BNB): – 14.7 %
5- Tether (USDT) : 0 %
6- Ripple (XRP) : – 21.35 %
7- Solana (SOL) : + 11.63 %
8- Dogecoin (DOGE) : – 17.83 %
8- USD Coin (USDC) : + 0 %
9- Polkadot (DOT): – 19.20 %
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Rudy Fares
