Why Bitcoin and altcoins crashed today?

Crypto currency news timeline across the globe

Crypto currency news timeline across the globe
Crypto currency news timeline across the globe

06.01.2022 – Bitcoin and altcoins updates

On 6th Jan’22, the Crypto currencies total market cap is about $2.085 trillion from the all time high of about $3 trillion in Nov’21. So, the whole crypto market is down about 30.5% from its all time high. Will it go down more or recover, only time will tell. (Source: Coinmarketcap)

Today on 6th January 2022, the Bitcoin broke the major level of $45,000 and went up to $42,631. Bitcoin is almost 40% down from its all time high (ATH) of $68,789 on 8th Nov’21.

There were 2 factors, which might have played a role in this crash:

  1. Fed minutes of meeting : Fed has clearly indicated that the hike in the rate of interest will be earlier and faster than expected. After the release of minutes of meeting by Fed in United States, the fall in price of Bitcoin started and altcoins like Ethereum, Shiba Inu, Dogecoin, Matic, BNB, Solana, also followed the fall.
  2. Internet outage in Kazakhstan: This country represents 18% of Bitcoin network’s hash activity and internet was out nationwide.

06.12.2021 8:00 am – Bitcoin and altcoins m-cap

At 8 am on 6th Dec’21, the Crypto currencies total market cap is about $2.2 trillion from the all time high of about $3 trillion in Nov’21. So, the whole crypto market is down about 27% from its all time high. Will it go down more or recover, only time will tell. (Source: Coinmarketcap)

04.12.2021 10:59 am – Bitcoin and altcoins crashed

Bitcoin crashed today almost 20% from about $57,000 to $45,032 within 24 hour. At this price, Bitcoin is down about 35% from its all time high (ATH) of $68,789 on 8th Nov’21. Same was the fate of Ethereum, Shiba Inu, Dogecoin, Matic, BNB, Solana and many more who crashed about 10% to 30%.

Why Bitcoin and altcoins crashed today? Reasons may be:

  1. Fed tapering – As US inflation is at 30 years high, so, there is a chance of raising interest rates before schedule, which will eventually pull out the extra money from the circulation.
  2. Bill for regulation Crypto currency by India : After China, India is also ready to pass a bill to regulate the Crypto currency in India, most probably in December parliament session itself.

Positive news at the time of falling cryptocurrencies:

  1. Even after such a slump today, Alex Mashinsky, CEO of crypto currency lending platform Celsius Network maintains the target of $140,000 of Bitcoin before 15th April, 2022 (speaking to Kitco News).
  2. The president of El Salvador has purchased the 150 Bitcoin at average of $48,670.

Disclaimer: The views are personal and this is not a financial advice. Consult your financial advisor before investing.

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