Why is the Crypto Market Down Today?
Analyse by Elena R
During the early European session, the crypto market cap slipped around 4 percent in the past 24 hours to hover about $2.42 trillion on Thursday. Bitcoin$BTC and Ethereum $ETH prices led the entire altcoin in a correction, which triggered notable liquidation.
The latest market data shows that Ethereum’s price slipped around 8 percent to trade at about $3,174. Bitcoin’s price continued with the recent correction to retest the 50-day Moving Average (MA) around $64k.
As a result, nearly $300 million was liquidated from the crypto derivatives market, mostly involving long traders.
2 Top Reasons Crypto Slipped Today:
1.Notable Cash Outflows From Spot Ether US ETFs
The US-based spot Ethereum ETFs registered a net cash outflow of about $133 million, led by Grayscale’s ETHE, which has nearly $8 billion more to dump. The poor performance in the first two days of soot Ether ETFs has increased the the crypto market pessimism.
2.Heavy Liquidations in the US Stock Market
The US stock market lost around $1.1 trillion in valuation in the past 24 hours, almost equal to the entire Bitcoin’s market cap. The notable stock market liquidations sent shockwaves to the entire global markets despite the low correlation with the crypto industry.
The upcoming FOMC statement has further presented further market uncertainty in the mid-term.
