Three Reasons for the Crash of the Cryptocurrency Market

Crypto investors were taken aback by Tuesday's developments. Within hours, the bitcoin market lost about USD 450 billion in market capitalisation. Certain cryptocurrencies, such as Solana (SOL), maintained a profit throughout the day. On the other side, the cryptocurrency market has lost an average of 10%. What caused the cryptocurrency market to crash? We'll take a closer look at what caused this unexpected crash.

What caused today's crypto market crash?

#1. JP Morgan delivered a Negative Memo to its shareholders.

JP Morgan advised its investors one day before the crash to avoid buying altcoins during this bull run. They alleged that retail traders were artificially inflating prices during fundamental technological developments (NFTs, scalable blockchains...). This note sowed discontent in the cryptocurrency community, precipitating a massive sell-off.

#2. El Salvador's Crypto Integration Has gotten off to a shaky start

The cryptocurrency market began to suffer after El Salvador's wallet encountered technical issues hours after its launch. President Bukele was obliged to announce that they would temporarily "go offline" as a result of this. This rocky start to their crypto integration spooked investors and sparked a sell-off, which snowballed into a market-wide sell-off. Negative news and strong selling forces have a significant negative impact on cryptos, particularly given their high volatility.

#3. It was inevitable that a price adjustment would occur.

The cryptocurrency market has been climbing for an extended period of time now, with no signs of a price pullback. This extended upsurge is undoubtedly frightening, particularly when prices increase by more than 50% in less than a month. Green candles can be seen in succession for the majority of cryptos. When combined with negative news, this ticking bomb will undoubtedly erupt whenever profiteers enter the selling game.

The Cryptocurrency Market in a Nutshell

Most cryptocurrencies have lost value during the last 24 hours. The market as a whole shed more than 10% of its value. Filecoin (FIL), MDeX (MDEX), and Ethereum Classic (ETC) are the top losers, each losing around 20%. On the other hand, we may observe notable gainers on such a red day, such as Near Protocol (NEAR) and Solana (SOL), which gained 22 and 11 percent, respectively.

Bitcoin (BTC) : – 9.2%

Ether (ETH) : – 12.7%

Cardano (ADA) : – 16.6%

Binance Coin (BNB): – 14.7%

Tether (USDT) : 0%

Ripple (XRP) : – 21.35%

Solana (SOL) : + 11.63%

Dogecoin (DOGE) : – 17.83%

USD Coin (USDC) : + 0%

Polkadot (DOT): – 19.20%

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