The crypto market always makes headlines for its unpredictable nature. Its unpredictability is one of its most consistent factors. It can turn bullish or bearish in a matter of minutes. Traders and investors endure major losses or gains with every market swing. However, certain internal and external factors also play a major role in setting the tone of the crypto market.
In the past few weeks, the market has crashed significantly. The likes of Bitcoin, Ethereum, and other major crypto tokens have gasped for relief. There is a state of fear in the crypto community as the market maintains an unstable position.
A total of $400 billion has been wiped out of the market, as the global crypto market cap is down to $1.69 trillion. Bitcoin has shed a major portion of its value. It is currently priced at around $37,600. However, over the last day, it touched lows of around $36,400.
On the other hand, Ethereum and BNB have also lost double-figure percentages during the last 7 days. Among significant crypto coins, XRP, ADA, and SOL have experienced a bloodbath. AVAX and MATIC have also posted long red candles against their names. This devastating market condition has shrunk the portfolios of most crypto traders and investors.
Reasons for the crashing crypto market
One of the major reasons for the plunging crypto market is the rising tensions between Russia and Ukraine. The conflicts between the two countries are worsening with every passing day. Russia is deploying troops in the Eastern region of the country, and a military conflict is becoming inevitable with Russia’s every move. This phenomenon is having a toll on all forms of financial markets. However, the cryptocurrency sector has suffered from major losses in these last few days.
Be it the gaming tokens, meme tokens, or any other digital tokens, the fall of cryptocurrencies has plagued the entire market. There is still no certainty in the coming weeks will help the market to structure a comeback. The rising inflation and global economic uncertainty are having a major impact on the thought process of investors. The risk index is suggesting the sentiments of extreme fear.
There was a common belief that Bitcoin and cryptos move against the trends of traditional markets. But since last year, the cryptocurrency market has stayed in line with the movements of the stock market. It remained vulnerable to developments at the international level. The Russia-Ukraine conflict is another indication of this fact.
