The the crypto market is collapsing hard. The price of Bitcoin has fallen almost 6% in the past 24 hours. It is currently trading at $18,826. Meanwhile, despite the Bellatrix upgrade, Ethereum is showing an extremely bearish move. ETH has fallen over 7% in the past 24 hours and is currently trading at $1,531.
The entire cryptocurrency market is in a rut. Yesterday, altcoins showed strength despite bitcoin’s lackluster performance. However, almost all cryptocurrencies are currently on the decline. While BNB is down 6%, Cardano is down almost 8%. Polygon’s MATIC is down more than 10%.
Meanwhile, Ethereum Classic (ETC), which was showing extremely bullish movement, is down nearly 15% in the past 24 hours.
Why is the crypto market collapsing
Much of the current crypto crash can be attributed to macroeconomic factors. Bitcoin price fell as the dollar showed renewed strength. The dollar hit its highest level in 20 years. The Bloomberg Dollar Spot Index hit record highs. Similarly, 10-year US Treasuries showed strength in anticipation of the Fed’s quantitative tightening.
The traditional market also fell in response to the strong dollar. The S&P 500 fell 0.4% while the NASDAQ 100 fell 0.7%. Gold prices also fell in response to the strong dollar.
Crypto is heavily influenced by macroeconomic factors and the performance of the traditional market. Coinbase Research pointed out that crypto is highly correlated with general markets, especially tech stocks and the tech-focused NASDAQ.
It is also possible that investors will exercise caution ahead of the merger. The Ethereum merger is an extremely important event and is likely to have a huge impact on crypto prices. A successful merger can lead to a bullish move. However, the problems with Ethereum after the merger could be catastrophic for the market.
Main upcoming events
The broad market awaits the release of the Consumer Price Index data on September 13th. Good CPI data can be a blessing for the crypto market. However, the market will also be looking to grasp the Fed’s intent from several key speeches announced this week.
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The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.