Why Bitcoin, Ether, Dogecoin, Other Crypto Prices Are Crashing Today

Ether, the second-largest cryptocurrency by market capitalization, was also down more than 6%, falling below $3,000. Dogecoin, Shiba Inu registered a drop of around 10%, while other tokens like Avalanche, Cardano, Solana, Terra, XRP were trading with losses of 6-11% in the last 24 hours. global cryptocurrency According to CoinGecko, the market cap fell 6% today to $1.93 trillion.

According to Arthur Hayes, co-founder of crypto trading platform BitMEX, bitcoin, the largest cryptocurrency by market cap, could drop to $30,000 by June. In a blog post, he also stated that the same dynamic could drive Ether up to $2,500. ,Bitcoin And Ether is highly correlated to the Nasdaq 100. If NDX tanks, it will take crypto down with it,” he said.

The cryptocurrency has been undermined by concerns about tighter monetary policy. Even the buzz surrounding last week’s Bitcoin 2022 conference in Miami was not enough to reverse the trend.

“The $95 billion per month balance sheet run-off, along with a 0.5 percentage point move by the Fed in upcoming meetings, weighed on crypto markets,” said Teong Hung, chief executive officer of Hong Kong-based Satori Research. bloomberg,

Bitcoin’s tendency to move in tandem with assets such as US tech stocks caps the downside for US markets after a rough week. Its correlation with the Nasdaq 100 Index is now back at record levels.

According to David Duong, Head of Institutional Research at Coinbase Global Inc., investors selling cryptocurrencies in the US ahead of the mid-April tax deadline are also seeing a repeat of the ongoing trend in 2021. “Last year we saw market players selling digital assets to make tax-related payments,” he wrote in a recent note. He added that investors are also souring on riskier assets as the Fed raises interest rates.

(with inputs from agencies)