Why is the Crypto Market Down Today?
During the early European session, the crypto market cap slipped around 4 percent in the past 24 hours to hover about $2.42 trillion on Thursday. Bitcoin (BTC) and Ethereum prices led the entire altcoin in a correction, which triggered notable liquidation.
The latest market data shows that Ethereum’s price slipped around 8 percent to trade at about $3,174. Bitcoin’s price continued with the recent correction to retest the 50-day Moving Average (MA) around $64k.
As a result, nearly $300 million was liquidated from the crypto derivatives market, mostly involving long traders.
The US-based spot Ethereum ETFs registered a net cash outflow of about $133 million, led by Grayscale’s ETHE, which has nearly $8 billion more to dump. The poor performance in the first two days of soot Ether ETFs has increased the crypto market pessimism.
The US stock market saw a staggering loss of about $1.1 trillion in valuation over the past 24 hours—almost equivalent to Bitcoin’s entire market cap. This significant liquidation in the stock market has reverberated through global financial markets, despite a traditionally low correlation with the crypto industry.
FOMC Uncertainty
The forthcoming Federal Open Market Committee (FOMC) statement adds another layer of uncertainty, contributing to mid-term market volatility.
Additionally, Bitcoin’s Fear and Greed Index has dropped to 68%, signaling increasing fear of a potential crypto capitulation. This apprehension has been partly fueled by Mt. Gox’s repayments to creditors, with over $2 billion deposited to the Bitstamp exchange in the last 24 hours.
Also Read: Peter Schiff Warns of Crypto Market Crash: FED’s Action Under Scrutiny
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