New Delhi: The cryptocurrency market witnessed a sharp crash on Tuesday with Bitcoin plunging below $60,000 and Etherium to its lowest levels this month.
Major altcoins like Binance’s BNB, Solana, Cardano, and Ripple’s XRP have also dipped around 7% to 10% of their value.
As per reports, the sudden crypto crash has wiped around $400 billion from the combined crypto market which recently touched a record high of $3 trillion.
The technical indicators were suggesting the continuous strong bull run in the volatile market but this sudden crash has shocked the investors.
Why is the Crypto market crashing?
The reason behind this crash is not clear yet as there can be multiple potential factors contributing to the dive.
Some experts are attributing the dip to new tax-reporting requirements for digital currencies which US President Joe Biden signed into law while some are quoting it to the BTC mining in China.
As we all know that crypto market is been very volatile and as per analysts it is too early to tell that why the Bull run has turned into a bear run. Some are suggesting that it is just a market correction that will take the market to a new all-time high.
As per The Independent, Nicholas Cawley, an analyst at foreign exchange firm DailyFX said that “Bitcoin’s sell-off has taken it back to levels last seen 10 days ago, hardly a plunge, more a correction of the multi-month rally.”
