The global crypto markets have been crashing since yesterday after days of remaining sluggish with minor gains. In the last 24 hours, the Global crypto market cap has crashed to $872 billion, down 3.71% over the last day, according to data on CoinMarketCap at the time of updating this article (12.52 pm, India time). As per analysts, there are several reasons behind the falling prices in crypto markets. Here’s a look at some of the most prominent triggers driving crypto markets and prices of top coins.
Weak global cues: The cryptocurrency markets reflect the downturn in global financial markets. The US equity markets traded low on Tuesday.
Falling Bitcoin: The top cryptocurrency has once again fallen below $20,000. At the time of writing, BTC was trading at $19,384, down 3.11% in the last 24 hours. BTC may now find support at $14,000. BTC’s weekly RSI had hit an all-time low a few weeks back and hasn’t recovered much from there.
Unusual BTC trade trend: The Bitcoin trade charts show the top cryptocurrency has closed below the 200-week Moving Average (MA) for the second week in a row. BTC analysts have found this unusual and unheard-of till now. The current weekly MA of Bitcoin is around $22,550.
Hedge Funds shorting USDT: Reports suggest that various hedge funds are betting against Tether (USDT), which is currently the largest stablecoins. There are concerns about the stable coin’s backing and systematic risks. According to ConiDesk, the short positions on USDT are worth hundreds of millions of dollars. Concerns over USDT’s systematic risks have increased since the TerraUST implosion last month.
Crypto sell-off: While the global crypto market cap and top coin prices are falling, the market volume has jumped 3.62 over the last 24 hours, indicating a crypto sell-off by traders.
1% TDS in India: A new tax rule in India from tomorrow will mandate the deduction of 1% TDS on every crypto purchase. The rule is expected to badly hit crypto trading in India as many exchanges are still trying to figure out how to deal with the new rule.