Many cryptocurrencies started to rebound from their bottom prices. Bitcoin rebounded from its low of $18,500 and reached a high of around $25,000, while Ethereum made more than 80% in the past 2 months. However, the crypto market today suffered from heavy losses, as the market is down by an average of more than 8%. Why are cryptos down? Will cryptos crash again soon?
The Crypto Market is Adjusting Heavily
Many technical analysts saw an uptrend formation in many cryptocurrencies over the past week. With the date of the Ethereum merge finally on the horizon, investors sought to buy more cryptos as their prices were expected to appreciate. Although it’s still too early to dismiss the upcoming surge in crypto prices, the crypto space became worries as most cryptos lost significantly in the past few days.
The crypto market overall slid by an average of 8% in the past 24 hours.
Why are Cryptos Down?
There are no clear fundamental reasons for the sudden price adjustments. It is clear however that most cryptos were on an uptrend previously and gained significantly over the past few weeks. In the past few days though, prices started to retrace lower.
Some analysts assume that this is due to a large sale transaction, while others assume that this is due to profit taking. Additionally, “snowball effects” are pretty common in the crypto space. This is when a small sale event affects prices negatively, followed by FUD which also leads to lower prices, followed by panic in the market which leads to further lower prices.
The Crypto Market at a Glance
In the past 24 hours, the cryptocurrency market lost more than 8% on average. The top losers were Filecoin, StepN, and Flow, losing respectively -18%, -17%, and -16%. To date, no cryptocurrency was reported to be spared from this crash. We assume that prices will adjust in the coming few days, however, it all depends on the general market sentiment. Here’s how the top 10 biggest cryptocurrencies by market cap performed.
1- Bitcoin (BTC): – 8.5 %
2- Ethereum (ETH): – 9.2 %
3- Tether (USDT): 0 %
4- USD Coin (USDC): 0 %
5- Binance Coin (BNB): – 7.0 %
6- Binance USD (BUSD): 0 %
7- Ripple (XRP): – 10.5 %
8- Cardano (ADA): – 13.2 %
9- Solana (SOL): – 10.2 %
10- Dogecoin (DOGE): – 14.6 %