Why bitcoin falling down today
The cryptocurrency market has experienced an unprecedented profitable bull over the past year. Many crypto coins have multiplied in value tens of times. Coins like Dogecoin, Shiba Inu coin have made early investors millionaires. Ethereum has shown significant growth. However, over the past few week, the crypto market has been continuously going down. Many cryptos have dropped in value significantly.
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Content:
- Why is the cryptocurrency market falling?
- Why Bitcoin, Ethereum, and Dogecoin Are Falling Today
- Cryptocurrency has an impact on economies. That’s why some are afraid of it – and some welcome it
- Is a bitcoin crash coming?
- Bitcoin Price Falls Below $8,000, Down 42% Since Start of the Year
- As it happened: US Fed triggers ASX correction as stocks plunge
- Bitcoin Continues to Stall Below $40,000. Here’s How Investors Should React to the Volatility
Why is the cryptocurrency market falling?
The cryptocurrency market is getting hit with more sell-offs today. ET Thursday. Rising bearish pressures are gripping the market, and investors have generally become more risk averse lately. Federal Reserve Chairman Jerome Powell made comments yesterday indicating the central bank will raise interest rates soon, and it looks like the increase may be one of many.
Uncertainty continues to shape valuations in the crypto space. While many top tokens are backed by decentralized ownership and governance structures, it's clear that the cryptocurrency market does not exist in a valuation vacuum.
Amid the backdrop of aggressive stimulus spending initiatives and basement-level interest rates, valuations for cryptocurrencies made big gains over the last few years.
However, the market is getting hit with volatile sell-offs on the heels of some recent shifts. Yesterday's comments from Powell point to an interest rate hike in the next couple months and additional increases later in the year. Rising rates and reduced stimulus initiatives signal a less favorable backdrop for high-risk growth investments, and the shift arrives at a time when regulatory pressures could also be increasing.
The Biden administration is reportedly eying an executive order introducing new regulations on cryptocurrencies that could be rolled out as early as February, and China, India, and Russia are among other countries signaling tougher stances on digital tokens. If that's not enough negative valuation catalysts for you, the crypto market has also been impacted by underwhelming performance updates from growth-dependent companies including Peloton , Netflix , and Tesla.
Even after recent sell-offs, Bitcoin, Ethereum, and Dogecoin have all managed to post substantial gains over the last year of trading. Bitcoin Price data by YCharts. However, the gains also exist in the context of some dramatic volatility. The valuation gulf for Dogecoin is even more staggering.
While the macroeconomic backdrop is shifting, top cryptocurrencies have been feeling the squeeze lately, and pressures could continue in the near term. The cryptocurrency market has been highly volatile across its relatively short history, and investors will have to weigh the potential for explosive returns against the possibility that a more pronounced bearish cycle could push token valuations lower.
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Author Bio Keith Noonan covers technology, entertainment, and other fields. Key Points Upcoming interest rate hikes and other risk factors are weighing on valuations for Bitcoin, Ethereum, and Dogecoin. Image source: Getty Images. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. Join Stock Advisor Discounted offers are only available to new members.
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Why Bitcoin, Ethereum, and Dogecoin Are Falling Today
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Cryptocurrency has an impact on economies. That’s why some are afraid of it – and some welcome it
Most of these assets appear to have suffered a sharp decline starting around UTC Saturday. Spot market selling seems to have driven the cryptocurrency lower. The decline triggered long squeeze in the derivatives market, which, in turn, led to a deeper slide. The market appeared over-leveraged earlier this week with open interest OI elevated in bitcoin terms. It is not common to see such a high OI being sustained for such a long duration. During sharp price declines, traders typically treat tether as a safe haven, given its value is pegged to the U. On Tuesday, Fed Chair Jerome Powell retired the word transitory from inflation discussion and said that the central bank might consider. The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.
Is a bitcoin crash coming?
Continuing the declining trend, Bitcoin price today tanked 9. Other digital currencies, Ether and meme coins are witnessing similar drawdowns. Ethereum lost Solana dropped
Bitcoin Price Falls Below $8,000, Down 42% Since Start of the Year
Other coins, which picked up the slack from bitcoin earlier to boost valuations, are also in a swoon. Among the top 10 most-traded digital currencies, most have witnessed double-digit declines with Ripple, which is down by A mix of regulatory concerns and the absence of a large trader willing to buck market behavior is causing a worldwide decline in prices. Several large corporations, including Facebook Inc. FB , and countries such as India, have banned or are considering banning products and services related to cryptocurrencies. Banks have also begun preventing cryptocurrency purchases through their credit cards.
As it happened: US Fed triggers ASX correction as stocks plunge
Following the two largest virtual tokens, the market cap of broader crypto market dipped by 4. Apart from Evergrande, other factors such as uncertainty created due to new COVID variant Omicron and fears of further Fed tapering leading to liquidity pull back have also contributed to the downturn in the crypto market. Similarly, Ashish Singhal, founder and CEO of crypto exchange CoinSwitch Kuber, points out that a range of macroeconomic factors are leading to crypto price movements. Our user base is dominated by retail investors. With news of a broader understanding of how the proposed crypto bill in India shall focus on investor protection and ensure financial system stability is reinforced, we are seeing positive interest among crypto enthusiasts. Sign In. With the overall crypto market sentiment remaining shaky, we might be in for a dismal Christmas this Latest Must Read Markets.
Bitcoin Continues to Stall Below $40,000. Here’s How Investors Should React to the Volatility
You might be using an unsupported or outdated browser. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. What better time to own a decentralized currency that holds its value? So why is BTC choosing now of all times to retreat?
The declines in cryptocurrencies follow Wall Street losses on Thursday. The Nasdaq Composite lost 7. Rising rates have prompted investors to shed positions in riskier assets. Earlier this week, the benchmark year Treasury yield traded above 1.
Over the past week, the cryptocurrency market has experienced massive drops, reaching lows not seen in months. Nick Casares, head of product at PolyientX, a platform for nonfungible token projects, said the landscape of crypto was originally decoupled from the traditional economy, but that has changed dramatically. A nonfungible token, or NFT, is essentially a piece of data that verifies you maintain ownership of a digital item, from a piece of artwork to a clip of a game-winning shot in an NBA game. Cryptocurrency drop: Bitcoin, Ethereum among cryptocurrencies losing value amid investor uncertainty. And when that happens, it tends to create a coupling between traditional markets and the crypto market.
Dec 4 Reuters - Bitcoin shed a fifth of its value on Saturday as a combination of profit-taking and macro-economic concerns triggered nearly a billion dollars worth of selling across cryptocurrencies. The plunge follows a volatile week for financial markets. Global equities and benchmark U.
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