The Crypto Market is experiencing some of the worst bearish phases, and in the past one day, BTC values have tanked by more than 6%. BTC had sunk below the psychological levels of $20K and was changing hands when reports last came in at $18,826. The fortunes of the number two cryptocurrency are also not very good. Despite soaring optimism, Ethereum is showing extremely bearish movement after the Merge upgrade. ETH has fallen over 7% in the last 24 hours and is currently trading at $1,531.
Baring the altcoins, showing some positive signs, most crypto assets are in the red. While BNB has tanked by 6%, Cardano has also sunk close to 8%, and the much-touted Polygon’s MATIC is down by more than 10%. Ethereum, showing some bullish trends, has also tanked by almost15% in the past day.
Crypto Market Crashing, What Went Wrong
The current Crypto Market crash is primarily attributed to other factors, and the chief is the macroeconomic factors. As the dollar gains strength, the stock market goes into a tailspin. The Crypto Market is also closely related to the stock market, and as the tech shares crash, it also has a bearing on the crypto sector. The traditional market tanked in response to the dollar’s increasing clout. The S&P 500 tanked by 0.4%, while the NASDAQ 100 sank by 0.7%. Gold prices also fell in response to the dollar’s strength. Crypto is powerfully predisposed by macroeconomic factors and the health of the traditional market. Coinbase Research emphasized that crypto is strongly interrelated to the general needs, particularly tech stocks and tech-oriented NASDAQ.
Another factor affecting the crypto sector is the extreme caution exercised by the investors who do not want to burn their fingers again, especially after the June crypto mayhem. The crypto sector is anxiously waiting for the Consumer Price Index data to be declared on the 13th Of September. Good CPI data can be a blessing for the crypto market.