Why Is Crypto Down? 5 Potential Reasons For Market’s Slide

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It is an algorithm-based stablecoin and uses a complicated method, with the help of luna, to ensure its value is maintained against the dollar. Rising prices mean economic pain for people — as our incomes aren’t, for the most https://theleadbtc.org/whats-going-on-in-the-crypto-market-today/ part, rising in tandem with prices — and they threaten economic growth more broadly. For damage control, earlier this month the Fed raised interest rates by half a percentage point, the largest increase in about two decades.

why is crypto down today

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SOL attempted a recovery rally after days of consolidation between a support and resistance level. This move was supposed to be the hail mary of bulls, but the buying pressure exhausted, leading to a lower high and correction that could exacerbate SOL’s condition. Here, FXStreet’s analysts evaluate where LUNA could be heading next. Ethereum, the second-largest crypto, was also trending down and valued at about half its peak from last November when it was trading at over $4,800 per token.

Bad Markets Can Give Good Bounces

The company announced Dec. 15, 2021, that Okamoto was stepping down as chairman at the end of 2021. As a result, the move saw bitcoin prices move closer to support of $35,000, which is a point it hasn’t reached since January 27. Danni Hewson, AJ Bell financial analyst, says Iceland’s move – and the jump in UK inflation this morning – may have prompted some investors to look at their portfolios. In sum, the best way to think about bitcoin is as an option on something that might one day be a currency.

  • Instead, keep averaging your investments in blue-chip cryptocurrencies,” says Edul Patel, CEO and co-founder of Mudrex, a global algorithm-based crypto investment platform.
  • UST is intended to be pegged to the U.S. dollar but it sank as low as 12 cents and collapsed in a pseudo-bank run as investors panicked and sold off their tokens.
  • FTX is a centralized cryptocurrency exchange that offers derivative and spot trading services.
  • Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
  • Aside from the rumors and government policy changes, the price of Bitcoin and other digital assets will begin to be more in correlation with the prices we see with traditional assets.

Between 2015 and 2020, the average purchase price of a TV declined by around 60%, according to Bureau of Labor Statistics Consumer Price Index data. In 2021, the price went up by 5.9% — the highest such increase in the past 70 years. Janko Roettgers (@jank0) is a senior reporter at Protocol, reporting on the shifting power dynamics between tech, media, and entertainment, including the impact of new technologies. Previously, Janko was Variety’s first-ever technology writer in San Francisco, where he covered big tech and emerging technologies. He has reported for Gigaom, Frankfurter Rundschau, Berliner Zeitung, and ORF, among others. He has written three books on consumer cord-cutting and online music and co-edited an anthology on internet subcultures.

Remember That Volatility Is The Name Of The Game

Convert your crypto holdings to a stablecoin to weather out a correction. When the correction is over, you can convert your assets back to the original cryptocurrency. Price alerts will give you a better chance to prepare this strategy and get it right. Do note that this is not without risks, so do your own research before making the decision. A 10% drop in the value of one’s crypto portfolio is enough to cause some investors to worry.

The Nasdaq Composite was likewise down more than 5%, while the S&P 500 tumbled almost 4%—what Bloomberg described as its worst performance since June 2020. After a short-lived rally on Wednesday, markets quickly lost their gains as sobering economic news kicked in. These are two cryptocurrencies created find out here now by the Terra network, a blockchain project developed in South Korea. On Thursday, UST was trading at about 41 cents, still well below its intended $1 peg. Luna, another Terra token that has a floating price and is meant to absorb UST price shocks, erased 99% of its value and was last worth just 4 cents.

Binance, which had invested in Terraform Labs and received luna tokens, saw a $1.6 billion paper loss on that investment, CEO Changpeng Zhao said on Twitter. It didn’t work, but the UST rescue attempt added to the selling pressure on bitcoin, which has hovered around $30,000, well below its November peak above $67,000 and 30% below its price in late April. If you’ve got questions about the crypto crash, the Protocol Fintech team has answers. One bitcoin forecaster recently told MarketWatch that he sees a potential eclipse-like event in the next few years for bitcoin that could lead to the crypto’s price moving over $100,000 by 2024.

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