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Home Crypto News Market Bitcoin Below $40K, Ethereum Below $3K, Main Reasons Of Crypto Market Fall

Bitcoin Below $40K, Ethereum Below $3K, Main Reasons Of Crypto Market Fall

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The start of 2022 was not good for the crypto market. Unlike for the last three years, this year started badly for Bitcoin and the company.

The global cryptocurrency market capitalization fell more than 5% today, dropping below the $2 trillion mark to $1.88 trillion, according to coinmarketcap.

Bitcoin continued its downtrend falling over 7% to $38,750. Bitcoin has lost over 14% since the beginning of this year, currently trading at $38,854

On the other hand, Ethereum has fallen below the $3,000 mark. It fell over 8% to $2,835. Cardano has fallen over 11%, while XRP, Polkadot, Litecoin Solana, Terra, Stellar have also been trading down in the 5-15% range over the past 24 hours. The price of Dogecoin also fell over 9% to $0.1487, Shiba Inu fell about 8% to $0.00002589 and, BNB dropped to $411, down 11%.

Reasons Of Market Fall

Cryptocurrency decline follows Wall Street losses on Thursday. The Nasdaq is down almost 5% this week, and the S&P 500 has fallen for the third week in a row.

As US 10-year Treasury yields soared earlier this week, rising rates forced investors to abandon their positions in riskier assets. Yields move in the opposite direction to prices.  U.S Fed Tapering is bad for unregulated markets like crypto. Tapering is the process in which the Fed slows down its purchases of new assets, including securities and bonds. Fed tapering and increasing interest rates could cause global liquidity to shrink and ultimately affect bitcoin’s price.

The crypto industry has faced several regulatory setbacks recently as skepticism about the rapid growth of digital assets around the world. Cryptocurrency exchanges will be the focus of the US Securities and Exchange Commission regarding digital assets in 2022. Russia’s central bank yesterday proposed a ban on bitcoin mining and cryptocurrency trading all across Russia.

Crypto funds have seen outflows for the fifth straight week, digital asset manager CoinShares said in a report, net outflows of digital asset investment products for the week ended Jan. 14 totaled $73 million.

Huobi’s recent report also predicts that Bitcoin will enter a bear market this year.

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The content is for informational purposes only and may include the author’s personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.


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