Markets
Why is the cryptocurrency market down today?
In early European trading, the cryptocurrency market capitalization fell about 4% over the past 24 hours to hover around $2.42 trillion on Thursday. Bitcoin (Bitcoin) and Ethereum prices pulled the entire altcoin into a correction, triggering a notable sell-off.
The latest market data shows that The price of Ethereum fell about 8 percent to trade at around $3,174. The price of Bitcoin continued with the recent correction to retest the 50-day moving average (MA) around $64,000.
As a result, nearly $300 million was liquidated in the crypto derivatives market, mostly involving long-term traders.
The main reasons for the current fall of cryptocurrencies
Ethereum ETF Outflows and Market Pessimism
US-based Ethereum Spot ETFs Record Net Cash output of approximately $133 millionled by Grayscale’s ETHE, which has nearly $8 billion more to sell. The poor performance of Ether ETFs in the first two days has added to the pessimism in the cryptocurrency market.
Stock market woes impact global sentiment
The US stock market has suffered a staggering loss of around $1.1 trillion in valuation over the past 24 hours, almost equivalent to Bitcoin’s entire market capitalization. This significant stock market selloff has had repercussions across global financial markets, despite a traditionally low correlation with the cryptocurrency sector.
Uncertainty within the FOMC
The upcoming statement from the Federal Open Market Committee (FOMC) adds an additional layer of uncertainty, contributing to market volatility in the medium term.
Mt.Gox FUD
Additionally, Bitcoin’s Fear and Greed Index fell to 68%, reflecting growing fears of a potential capitulation in the cryptocurrency. This apprehension has been fueled in part by Mt. Gox’s repayments to its creditors, with over $2 billion deposited into the Bitstamp exchange in the past 24 hours.
Read also : Peter Schiff Warns of Cryptocurrency Market Collapse: Fed Action Under Watch
The cryptocurrency market is in turmoil. Are we heading for a crash or is this just a temporary setback?