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The crypto market is crashing hard. Bitcoin price has fallen by close to 6% in the last 24 hours. It is currently trading at $18,826. Meanwhile, despite the Bellatrix upgrade, Ethereum is showing extremely bearish movement. ETH has fallen over 7% in the last 24 hours and is currently trading at $1,531.
The entire cryptocurrency market is in a rut. Yesterday, altcoins showed strength despite a mediocre showing from Bitcoin. However, almost all cryptocurrencies are currently falling. While BNB is down by 6%, Cardano has fallen close to 8%. Polygon’s MATIC is down by more than 10%.
Meanwhile, Ethereum Classic (ETC), which was showing extremely bullish movement, is down by close to 15% in the last 24 hours.
Why Is Crypto Market Crashing
A lot of the current crypto crash can be attributed to macroeconomic factors. Bitcoin price fell as the dollar showed renewed strength. The dollar jumped to a 20-year high. The Bloomberg Dollar Spot Index experienced record highs. Similarly, US 10-year treasury bills have shown strength in anticipation of the Fed’s quantitative tightening.
The traditional market fell as well in response to the dollar’s strength. The S&P 500 fell by 0.4% while the NASDAQ 100 fell by 0.7%. Gold prices also fell in response to the dollar’s strength.
Crypto is strongly influenced by macroeconomic factors and the performance of the traditional market. Coinbase Research highlighted that crypto is strongly correlated to the general markets, especially to tech stocks and tech-oriented NASDAQ.
It is also possible that investors are exercising caution leading up to the merge. The Ethereum Merge is an extremely large event and is likely to have a huge impact on crypto prices. A successful merge can lead to bullish movement. However, issues with Ethereum after the merge could be catastrophic to the market.
Major Upcoming Events
The entire market is waiting for the Consumer Price Index data to be released on the 13th Of September. Good CPI data can be a blessing for the crypto market. However, the market will also look to pick up the Fed’s intent from several key speeches lined up this week.
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