A deep dive has hit the global cryptocurrency market today a Black Friday as a majority of the coins experienced a huge hit. In the last 24 hours, the whole cryptocurrency market cap has been down by over 5.3%.
With crypto prices starting to recover from the previous day, and with indications of bullish momentum to follow. Bitcoin was almost hitting the $60k mark while Ethereum’s price indicates a $4.5k rise. However, the cryptocurrency market crashed today which coincides with Black Friday sales day.
Bitcoin now trades at $54,700, while Ethereum goes for $4,073, which appears to be the lowest price in the last month. The effect was harder for the altcoins.
Litecoin is trading below the $200 zone, while other meme coins like SHIB and DOGE are experiencing a significant market crash.
What’s causing the crypto market crash?
It may appear that all cryptocurrencies are on Black Friday sale, however, there has been a large-scale crypto sell-off in the market leading to the crash. The global stock market has been experiencing a decline for a while now.
The new Covid-19 strain has induced fears which have led to a widespread liquidation in the US stock market, thus spreading the effect to the large crypto market globally.
In the United States for instance, since November, the crypto market has been under a lot of regulations. Recall also that the Indian government had announced it may put a ban on cryptocurrency transactions in the country and this has led to a bearish momentum. This was followed by a stock market crash leading to today’s crypto market crash.
In all this, Ethereum and Bitcoin proponents are confident that the Black Friday is temporary and it only happened due to Black Friday. However, cryptocurrency market advisors have warned that investors should be on guard owing to potential volatility.
Presently, the bears appears to have dominated in the month of November.
Don’t miss important articles during the week. Subscribe to blockbuild weekly digest for updates.