Why are cryptos falling so much?
The current slowdown in the cryptocurrency market is not caused by internal factors, but is linked to the broader collapse of the Nasdaq.
This external shock has had a domino effect across financial markets, dragging cryptocurrency prices down along with technology stocks.
After carefully analyzing various on-chain metrics (A term used in the cryptocurrency world to refer to transactions, records, and processes that occur directly on the blockchain), it is clear that this decline was triggered by the significant drop in the Nasdaq, which strongly influenced investor sentiment and market dynamics.
The connection between cryptocurrencies and global financial markets is becoming stronger over time. When a major stock index like the Nasdaq suffers such a sharp drop, it creates widespread panic, causing investors to exit both stocks and digital assets. This has put significant selling pressure on cryptocurrencies, even though their fundamentals remain unchanged. Essentially, the cryptocurrency market has been caught in a storm created by external forces, and navigating this period will require patience and a long-term perspective.
Nasdaq is an automated stock exchange in the United States that lists over 2,800 stocks from a variety of companies, mostly small and mid-cap. It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. The trading platform is owned by NASDAQ OMX Group, which also owns the OMX stock exchange network.