Bitcoin experienced a sharp decline on Tuesday morning following nearly a month of upward movement, causing other cryptocurrencies to suffer sympathetic cold sweats. The stock market opened poorly, with the Dow dropping by 450 points, and the cryptocurrency market is following the same trend. The flagship cryptocurrency dropped 7% in the past 24 hours, trading at $64,000 at the time of writing. Just a week ago, the cryptocurrency was above $70,000.
Other cryptocurrencies followed suit, including Ether, which fell 8.4% in the past 24 hours, hovering around $3,200. The second-largest cryptocurrency has fallen over 10% in a week. A similar trend was observed with popular favorite Dogecoin, which soared 40% on speculations of being added as a payment option on Elon Musk’s X but fell 14% in the day’s trade to $0.18 today. Crypto’s bloodbath made itself felt as the global crypto market cap fell by 6.88% to $2.46 trillion today, according to crypto tracking site CoinMarketCap.
One of the major causes of the recent crypto bloodbath is the significant liquidations in the past 24 hours— $213.85 million worth of liquidations, to be exact— at Binance, the largest crypto exchange.
The SEC’s approval of spot Bitcoin ETFs was the main cause behind the rise of Bitcoin this year. Now that spot Bitcoin is struggling, it is likely to have a negative impact on Bitcoin and the entire cryptocurrency market.
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Bitcoin halving volatility
Usually, Bitcoin rides a rollercoaster of peaks and valleys after hitting record highs. The upcoming Bitcoin halving event, which will reduce the reward for mining new Bitcoin by half around mid-April, is also responsible for market volatility. In other words, we can expect more uncertainty in coming days.
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Previous halving events have sent Bitcoin prices higher. The most recent halving event took place on May 11, 2020, resulting in a block reward of 6.25 Bitcoin. This year’s halving will reduce the reward to 3.125 Bitcoin for miners.
"Bitcoin has plummeted to around $53,000, marking a significant decline, while Ether has also turned negative for 2024, reflecting broader concerns in the crypto sector. This downturn is driven by regulatory pressures, adverse macroeconomic factors like weak US job data, and the Japanese stock market crash.
How is the Crypto Market Performing? The crypto market is in a significant surrendering phase, with Ethereum and Bitcoin experiencing sharp declines. The key market factors include political uncertainty, geopolitical tensions, economic data, and ETF performance.
In the digital currency space, it's common for many coins and tokens to move in similar patterns. When bitcoin (BTC), the largest cryptocurrency by market cap, goes up, other digital tokens tend to increase in value as well. When BTC declines, it's likely that other players in the space will drop at the same time.
The last halving occurred on April 19, 2024. If events unfold the same way they have in the past, Bitcoin's price will rise again; however, there is no guarantee that it will react the same. Bitcoin's price should continue to rise as long as it continues to grow in popularity and its supply cannot meet demand.
The most important thing to remember about Bitcoin is that it is a high-risk asset. Never invest money that you aren't willing to lose. Treat Bitcoin as a means of slowly growing your existing wealth rather than an all-or-nothing gamble. As with other investments, it's important to hedge your portfolio.
When long positions are liquidated, traders who are betting on prices going up are forced to sell their positions, often at a loss. This increased selling pressure has driven the crypto market valuation lower today.
Crypto Crash: The sell-off across the globe has led to a massive decline in equity markets and affected cryptocurrencies, with Bitcoin falling over 12 per cent in the last 24 hours. Investors have become cautious following a soft jobs report from the US, raising fears of an oncoming recession.
Bitcoin fell sharply after a sell-off of major U.S. stock indices. Bitcoin has been correlated closely to the price movement of the Nasdaq index. Cryptocurrencies tumbled amid a global market sell-off spurred by recession fears.
Cryptocurrencies like Bitcoin can experience daily (or even hourly) price volatility. As with any kind of investment, volatility may cause uncertainty, fear of missing out, or fear of participating at all. When prices are fluctuating, how do you know when to buy? In an ideal world, it's simple: buy low, sell high.
Once all 21 million bitcoin are mined by the year 2140, no new bitcoin will be created. This means miners will no longer receive block rewards for adding new blocks to the blockchain. Instead, their compensation will come solely from transaction fees paid by users.
Crypto Crash: The sell-off across the globe has led to a massive decline in equity markets and affected cryptocurrencies, with Bitcoin falling over 12 per cent in the last 24 hours. Investors have become cautious following a soft jobs report from the US, raising fears of an oncoming recession.
The three primary factors that drive crypto value are: supply and demand, market perception, and competition. Most cryptocurrencies implement mechanisms to limit supply and prevent inflation. Market perception is closely related to market value. The higher one's market perception, the more one is willing to pay for it.
Introduction: My name is Barbera Armstrong, I am a lovely, delightful, cooperative, funny, enchanting, vivacious, tender person who loves writing and wants to share my knowledge and understanding with you.
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