There are always quite a number of reasons why the crypto market keeps crashing, with Bitcoin barely managing to salvage its dive below $50k. While it can’t be denied that pinpointing the exact reason behind crypto cash is quite impossible, one could circle around the factors to get an estimate. As it stands, BTC went down from its Friday price of $57,000 to a sum of $45,000, after which it came up to a sum of $48,000.
The move from the former price to the latter price does symbolize a drop of 14.2% in the afternoon levels. Several other cryptocurrencies like Ethereum and Solana have also seen quite an inexplicable drop over the last 24 hours. According to a major report, the total crypto market cap went down from $2.6 trillion on Friday to a sum of $2.07 trillion on Saturday.
Reasons Behind Bitcoin’s Fall
One of the major reasons behind Bitcoin experiencing this drop is plain vanilla equities, which have been partly purchased by the Federal Reserve. This purchase has had the crypto investors spooked by multiple speculative assets. Louis Navellier, a famed investor, has also informed that the tapering of the Federal Reserve could burst the bubble of both BTC and crypto.
Another important factor that should be considered while discussing the drop of Bitcoin would be the rise of the new Omicron strain of the Coronavirus. The leading uncertainty surrounding this strain, and the efficacy of the vaccines in such a situation have led investors and traders to run for the hills, as most currencies could play hot potato at this moment.
Another reason which could be looked into is the season. Most of the investors have been looking towards seeing the year wind down- something that will help them lock in their gains. Irrespective of the money being off the table, Bitcoin is still up by around 66% this year.