What’s causing today’s crypto market crash? As of this writing, the cryptocurrency market has fallen to its lowest point of 2017. The worldwide market cap has decreased from $1.10 trillion to $1.02 trillion.
Why is the value of cryptocurrency plummeting today? Today, the cryptocurrency markets hit a new low for the year (13th June, 2022). Since yesterday, the global market cap has fallen below $1 trillion to $977 billion, a roughly 12% drop.
This year, the worldwide cryptocurrency market valuation has plunged by about $1 trillion, while practically every major coin is now worth half or less than its all-time highs.
Coinciding with rising inflation fears and Celsius’s suspension of withdrawals appears to be the direct cause of the crypto-crash. The stock markets are also reflecting investors’ continued aversion to risky investments.
Despite Bitcoin’s recent drop below $22,000, practically all other cryptocurrencies have had their prices plummet during the weekend, starting with Ethereum.
At $1155, Ethereum is the lowest level it’s been in more than a year. According to CoinMarketCap, the price of Solana has dropped by about 15% and is currently at the $27 mark.
Reason for Crypto Crashing
Cryptocurrency prices have plummeted as a result of investors’ decreased willingness to take risks, according to experts. Clearly, they are leery of speculative investments. Cryptocurrency is one of the most volatile investment tools because of the inherent uncertainty and volatility that it entails.
The Federal Reserve has been raising interest rates to combat inflation, which has put pressure on the cryptocurrency market. According to Mudrex Co-Founder and CEO Edul Patel, “most cryptocurrencies incurred losses over the weekend amid a widespread sell-off following the statistics showing US inflation hitting a 40-year high.”
Since Friday, there has been a significant increase in the number of crypto liquidations. Both Bitcoin and Ethereum have fallen by as much as 7% and are now trading at their lowest levels of $25,000 and 1,300 US dollars, respectively. In the following days, the bearish trend would certainly continue, he said.
Altcoins have always lagged Bitcoin, but this time they face the added stress of potential regulatory obstacles. According to a report by CoinDesk, just a few altcoins are expected to withstand the current market volatility.
Why Forex Broker?
You can acquire a currency pair to keep in an easy and convenient manner through the use of a forex brokerage, which gives you the opportunity to participate in the financial system.
Before the advent of forex brokers, those who were interested in trading in the foreign currency were required to possess a significant amount of capital in addition to a close connection with a particular bank in order to purchase foreign currencies.
Pepperstone is a worldwide trusted forex broker. Here you can read more about pepperstone.
Best Forex Broker
The best forex broker excels in reliability, competitive fees, user-friendly platforms, diverse assets, strong support, and regulatory compliance. Key factors include tight spreads, low commissions, fast execution, and top-notch security. However, the ideal broker varies based on individual trading style and needs. Researching and comparing brokers based on these criteria helps traders find the most suitable option.
Best Forex Brokers in South Africa
Traders in South Africa have seen a dramatic increase in the number of online Forex brokers, as well as improved access to online trading, as a result of a proliferation of both offshore and local online Forex brokers.
Here you can check the best forex brokers in South Africa.
AvaTrade
AvaTrade is a renowned and well-known forex broker in the globe. This is only one of several trading alternatives that AvatradeGO gives.
As a result, it features a world-class set of trading tools, including Trading Central, together with excellent analytical and educational resources.
Exness
Exness offers CFD trading on a wide range of assets, including currency pairs, commodities, energy, indices, and equities, to give clients a taste of global markets.
Customers of Exness can additionally benefit from fast, precise, and tight spread order execution. Virtual private server (VPS) and MT4/MT5 trading platform support are included in every Exness account.
Tickmill
Due to its abundance of resources, free use of premium tools, and good trading conditions Tickmill is a wonderful choice for beginner traders.
Beginner and intermediate traders alike will find the broker’s educational resources and platforms appealing.