Here Are Three Reasons Crypto Is Down Today

The crypto market led by Bitcoin is experiencing a significant decline in value. Following the increased volatility is a wave of liquidation mostly involving long-term traders. The price of the leading cryptocurrency dipped below $64,000 on April 25th, exchanging hands at $63,461, which represents a 4.3% decline in the last 24 hours.  

According to data from Coinglass, over $200 million was liquidated in the past 24 hours, with Bitcoin and Ethereum experiencing about $37.83 million and $34.17 million in long-position liquidations, respectively. The price of ETH declined by 5.1% at press time, trading at $3,129.

Other Altcoins were not left behind, as most of them saw a greater decline in value than Bitcoin. For example, Solana, Cardano, and Dogecoin witnessed drops of 9.1%, 6.2%, and 8.1%, respectively. The global cryptocurrency market experienced a decrease of 4.28% to $2.37 trillion in the past 24 hours, demonstrating its highly volatile nature. 

Reasons Why Crypto Market is Down

The recent drop in the value of most cryptocurrencies can be attributed to various factors. One of which is the escalating geopolitical tensions in the Middle East. These tensions temporarily waned the demand for cryptocurrencies in these regions, contributing to the downward pressure on prices.

Another significant factor behind the current market crash is the arrest of Keonne Rodriguez and William Hill, the co-founders of cryptocurrency mixer Samourai Wallet. The United States Department of Justice charged the duo on Wednesday with conspiracy to commit money laundering and operating an unlicensed money-transmitting business. The news of the arrest sent a wave of shock to the crypto community, fueling uncertainty and instability and prompting investors to reassess their holdings.

Another event that contributed to the market downturn is the recent halving, which occurred on April 20. Historically, post-halving periods have been characterized by price fluctuations as miners and investors adjust to the reduced supply of new Bitcoins entering circulation. Therefore, the community anticipated short-term volatility however, these other factors have further amplified the instability and uncertainty in the market. 

Overall, the current market conditions demonstrate its volatile nature and the need for investors to remain vigilant. The market recovery will likely depend on several factors, including the stabilization of post-halving volatility and the resolution of the tension in the Middle East.