Crypto News

Crypto Market Crash Causes 6.44% Drop

The cryptocurrency market fell 6.44% on Wednesday, signaling a market-wide crash that has brought the total market cap down to $1.38 trillion.

Check out the drop from Bitcoin in the View live course at.

BTC/USD

crash over the market

The fact that Bitcoin (BTC) is down 3.48% may not seem significant, but this statistic comes after a month of gradual declines and several days of relatively sharp declines. Bitcoin is well below where it started this year with BTC price at $30,285 (BTC/USD) compared to January 1st figure of $46,726.

Ethereum (ETH) is down 6.21% today, fueled by a domino effect caused by Bitcoin’s decline. However, the more significant losses are further down the leaderboard, but you don’t have to look far. BNB (BNB) fell 12.11%, XRP (XRP) up 15.97%, Cardano (ADA) by 15.70% and Solana (SOL) by 24.29%, just to name a few.

This resulted in the entire market being dragged lower, with some cryptos seeing lower rates than they have been in years. Some cryptos are experiencing massive crashes that have devastated investments, like Terra (LUNA), which is down 92% for the day.

Is it safe to buy the dip?

There is a tendency for investors to jump on low rates like these when they occur and there is some wisdom in that, but we advise caution. Bitcoin is down 45% compared to this time last year and 34% year to date. It’s showing a roughly 45% year-over-year decline, making it a poor long-term investment.

You can find similar numbers on some of the other cryptos as well, making it difficult to recommend for long-term investors. However, short-term traders could turn a profit. There is great potential for these prices to rise again in the near future, but whether they will stay there for long is another question.

If you invest in the decline, it’s wise to only do so while keeping a close eye on prices and sell before they crash again. Much luck!

Source: Crypto News Deutsch

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