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CRYPTO UPDATE: Why Bitcoin Further Crashed to $18k Today

After days of staying sluggish with marginal gains, the global cryptocurrency markets have been tumbling once more since yesterday. According to data from CoinMarketCap, the global crypto market valuation fell to $872 billion in the latest day, a decrease of 3.71 percent from the previous day. According to researchers, there are a number of causes behind the declining prices in the cryptocurrency markets. Here are some of the key factors that are causing the price of top cryptocurrencies and cryptocurrency marketplaces to decline:


1. Weak global cues: The decline in international financial markets is reflected in the cryptocurrency markets. On Tuesday, the US equity markets saw little trading.


2. Falling Bitcoin: The leading cryptocurrency has once more dropped below the $20,000 mark. BTC was currently trading at $19,384, down 3.11 percent over the previous day. At $14,000, BTC may now find support. The weekly RSI for BTC hit an all-time low a few weeks ago and hasn't made any progress since then.


3. Unusual BTC trade trend: The top cryptocurrency has closed below the 200-week Moving Average (MA) for two weeks running, according to the Bitcoin trade charts. BTC analysts regarded this as remarkable and previously unheard-of. Around $22,550 is the weekly MA for Bitcoin at the moment.


4. Crypto sell-off: While the top coin prices and the total value of all cryptocurrencies are declining, the market volume has increased by 3.62 over the past day, indicating that traders are selling crypto.


5. 1 percent TDS in India: Starting tomorrow, a new tax law in India will require that 1 percent TDS be deducted from each cryptocurrency purchase. Since many exchanges are still figuring out how to handle the new law, it is anticipated that the rule will have a significant negative impact on cryptocurrency trading in India.


6. OpenSea reported a data breach: OpenSea is one of the biggest global NFT marketplaces. The email management service Customer.io exposed the list of OpenSea clients to a third party, according to a platform employee.

7. Coinbase Reportedly Selling Geolocation Information: Coinbase, one of the biggest cryptocurrency exchanges, is allegedly selling geolocation information to the U.S. Immigration and Customs Enforcement division (ICE). According to a CoinDesk investigation, the pooled data supposedly include information about cryptocurrency users, including their "previous geo-tracking data" and transaction history.


8. Genesis faces enormous loss: According to a CoinDesk report, the cryptocurrency lender Genesis is reportedly facing losses that could total hundreds of millions of dollars because of its exposure to the Hong Kong-based, highly leveraged hedge fund Three Arrows Capital Babel Finance.


9. Hedge Funds shorting USDT: According to reports, a number of hedge funds are placing bets against Tether (USDT), the largest stablecoin at the moment. The backing and systematic dangers of the stable coin are a source of concern. ConiDesk estimates that the USDT short holdings are worth hundreds of millions of dollars. Since the collapse of TerraUST last month, worries about the systematic hazards of USDT have risen.


10. Three Arrows fiasco: The British Virgin Islands have ordered the liquidation of cryptocurrency hedge fund Three Arrows Capital. According to sources, the company faces a $400 million deficit and may eventually become insolvent.

ARTICLE SOURCE: FINANCIALEXPRESS

Content created and supplied by: JohnnyMax (via Opera News )

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