#CryptoMarketDip
The post Why the Crypto Market Is Crashing Today: Key Factors Behind the Drop appeared first on Coinpedia Fintech News
In the last 24 hours, the cryptocurrency market has witnessed a damaging drop of 7.9%. Almost all the major cryptos have suffered the impact of the overall crypto market decline. Importantly, yesterday, the altcoin market sharply declined from $1.49T to $1.38T. The latest crypto trend bearish turn is seen as a consequence of the US market downfall and the strengthening of the US dollar against major currencies. Yesterday, the S&P 500 index slipped from around $5,993.96 to $5,909.02. However, experts believe that the bull trend in the crypto market remains intact. Is now the time to buy into Bitcoin’s dip? Let’s explore.
What Caused the Crypto Market Correction?
On January 7, the S&P 500 displayed a severe single day drop of 1.38%. Several prominent US stocks, Tesla and Nvidia, showed similar trends on the same day.
Tesla declined from $406.15 to $393.65, and NVIDIA sharply plummeted from $153.11 to $140.14.
Last day, the Euro, against the US dollar, has grown by 0.46%, the Japanese Yen by 0.30% and the Indian Rupee by 0.11%, demonstrating the growing strength of the US currency against prominent currencies.
Reports say that these factors have influenced the crypto market negatively, causing into to show a sudden reversal.
Insights from the Options Market
Reports indicate that short-term implied volatility has increased slightly but remains low. Reports add that options skew and futures appreciation has not shown any notable changes. Meanwhile, market indicators suggest that expectations for future volatility are stable.
Is the Bitcoin Bull Market Still Intact?
In the last 24 hours, the Bitcoin market has dropped by approximately 5.0%. In the last one hour alone, it has declined by at least 0.3%.
Experts believe that the current decline is temporary in nature. They point at the market’s strong fundamentals and its growing demand as the key signs of its future growth potential
