The Crypto market crash took a worse turn on Monday morning with key crypto assets dipping to multi-month lows amid increased geo-political tensions, Uncertainty on the United States Elections, and a windfall in the global markets.
Bitcoin and Ethereum dropped to shocking price levels early Monday morning before slightly correcting later in the day.
Early Monday morning, Bitcoin dropped to $49,883, its lowest level since February while Ether also fell to its lowest level since January, losing 23.75% to trade at $2,186.
However, at the time of Report, Bitcoin has slightly gained to $52,617 while Ethereum is currently trading at $2,321.
The crypto market crash also affected other top crypto assets. Among other top 10 crypto tokens by market cap, BNB dipped 22.8% and XRP dropped 19.8%. The entire crypto market is down 18.2% in the past day.
There are a variety of reasons why the crypto market is currently crashing with so much happening around the world at the moment.
Some of the foremost reasons for the crash are increased Geo-political tensions, Growing fears of a recession following poor employment data in the US released last Friday, and News over the weekend that Warren Buffett’s Berkshire Hathaway sold nearly half of its Apple Inc. position during the second quarter.
There is also a development involving Jump Crypto, the crypto arm of Jump Trading who are speculated to be preparing to sell off their huge crypto assets following a regulatory investigation.
Jump crypto has been moving 100 million worth of crypto assets including Ethereum and USDT to centralized exchanges sparking rumors of a potential sell-off.
The Global stock markets have also not fared well. Japan’s Nikkei recorded a 12.4% loss marking the worst day for the index since the “Black Monday” of 1987. The Nikkei erased all its gains this year, moving into a loss position.
The recession fears which partly contributed to the crypto market crash also led to significant declines in NASDAQ and S&P 500.
How are Bitcoin and Ethereum Faring at the Moment?
The crypto market crash has seriously affected the price level of the two biggest crypto assets, Bitcoin and Ethereum.
At the time of writing this report, Bitcoin is exchanging hands for $51,851 dropping by 14.7% in the last 24 hours with a maximum price of $61,048 and a minimum price of $49,221. The crypto asset is now 28.6% down from its all-time high.
Ethereum on the other hand, Ethereum is exchanging hands for $2,297 dropping by 21.1% in the last 24 hours with a maximum price of $2,922 and a minimum price of $2,171. The crypto asset is now a whopping 52.5% from its all-time high.
What to Know
- Another factor affecting the crypto market and leading to the crash is the uncertainty around the United States elections. Several polls have placed Kamala Harris ahead of Pro Crypto Donald Trump leading to sell-offs by concerned American crypto holders.
- Geo-political tensions marked by heightened military activity in Iran and the Middle East following key assassinations last week are also a major factor.
