The falling price of cryptocurrencies has made the market and the investors incur massive losses.
Overview
- A lot of crypto assets have seen a drop in their price ranging around 25% or more.
- The increase in the yields of US Treasury bonds may be the reason for this price correction of the crypto market.
- The ADA of Cardano has been shut down after having a successful run this week.
Why did the market crash?
Price correction of the crypto market space is continuing its downward trend. The price of Bitcoin went down as low as $43.7k for a short period, kicking it down almost 7% in the past 24 hours, ending an extremely dark week for Bitcoin as it chipped off around its price by about 25%.
The Macroeconomic happenings all over the globe could be a reason for this market crash. Another big reason might be the high yield Treasury bonds of the US, whose yields had witnessed a record increment this year before they went back down, but they did some serious damage to other investments which involve a higher risk like crypto-assets and tech stocks. Their damage to the tech stock market is a bit similar to what is happening with the crypto market.
Other crypto assets are also being affected
The second cryptocurrency which took a huge hit in its price is Ethereum. Ethereum’s price has been going down continuously. Its price yesterday was around $1500, but it dropped to around $1382 with a decline of 6%. This drop concluded this week’s price decline with a total of 30% price drop within a week. To get an idea of how big this loss was, it should be understood that Ethereum was being traded in the past week at its all-time high price of $2k.
The ADA token by Cardano has been the only crypto asset that has been defying the market this past weekend and soaring at its highest price of $1.48 just a day ago. This performance, however, was not the end of the story. Today, it dropped by 11% to $1.29 overnight. Other cryptocurrencies like Uniswap, Polkadot, Chainlink, and XRP have also been going down by a significant amount.
