The cryptocurrency market is set for another crash as the market cap has fallen from $1.10 trillion to $1.02 trillion as the market faces yet another decline.
The cause of the recent drop in valuation suggests huge sell-offs from investors with inflation projected to rise, warring off current and potential investors.
Bitcoin, one of the most popular and valuable cryptocurrencies, has dropped to $25,586 as other currencies such as Ethereum continue to fall, suffering its lowest market drop in 14 months with Solana also suffering with a steep 30% drop off.
“The crypto market has been under pressure from the Federal Reserve, hiking the interest rates to combat inflation over the past few months,” stated Edul Patel, Co-Founder and CEO of crypto investment platform Mudrex. “Bitcoin, Ethereum, and most cryptocurrencies suffered losses over the weekend after a broad sell-off following the data showing US inflation hitting a 40-year high.”
He added: “As investors seem to have panicked, the number of crypto liquidations has been high since Friday. Bitcoin and Ethereum plummeted as much as 7% each and are currently trading at their lowest at $25,000 and $1,300. The bearish trend may likely continue in the next coming days.”
This recent drop in the crypto market comes after it took another hit a few weeks ago, when the TerraLuna and USD cryptocurrency dramatically collapsed, reaping detrimental effects for the rest of the crypto market.
Crypto experts suggest that one cause for the decline is investors losing interest and appetite to invest more into the market. There is also still the lingering fear of crypto’s volatility, with the recent TerraLuna crash a painful reminder of the unpredictability cryptocurrencies have.
Now with $500,000,000 being liquidated from the market in the last 24 hours, a ‘Crypto Winter’ could be on the horizon, as the market is expected to keep falling with more investors wary of the significant drop in the past several days.
JUST IN: $500,000,000 has been liquidated from the #crypto market in the past 24 hours.— Watcher.Guru (@WatcherGuru) June 13, 2022