Crypto Crashes As Altcoins Tank, Why Is Crypto Crashing Today?

The crypto market crashes in the last 24 hours. The crypto market cap has fallen another 4% in the last 24 hours and is in serious danger of falling below the $900 billion mark.

Bitcoin is down 3% in the last 24 hours and is trading at $19,464. However, it is the altcoins that are feeling the brunt of this bear market.

Ethereum continues to face a major slump after the Ethereum merger. ETH is down another 8% in the past 24 hours. In the last 7 days. Ethereum is down 23% and is trading at $1,344.

Altcoins in a big slump

Ethereum’s post-merger price drop is reflected in the other altcoins. Cardano, Solana, Dogecoin, and Polkadot are all down nearly 7%. Polygon’s MATIC, Shiba Inu and Avalanche faced an absolute bloodbath as they fell nearly 10%.

Ethereum Classic and ETHPoW were the two biggest losers over the past 24 hours. While ETC fell 12%, ETHPoW fell almost 50%. ETHPoW is a hard fork of Ethereum that hopes to keep the post-merger Proof-of-Work alive on Ethereum.

Why is crypto crashing today?

The crypto market slump is a direct result of macroeconomic conditions. According to experts, the Ethereum merger could not have happened at a worse time. Due to rising inflation, the Federal Reserve has taken an extremely hawkish stance.

The next Federal Open Market Committee will meet on September 21 to discuss the next rate hike. According to the CME Fed Watch Tool, the Fed will most likely target a 75 basis point hike. However, experts believe that the market is also pricing in a 100 basis point hike. A 75 bps hike will likely already be fully priced in and not have a huge impact on the crypto market.

Meanwhile, Elon Musk’s deflationary warning and the World Bank’s recession warning also play a role given the Fed’s jumbo hike.

Nidhish is a technology enthusiast whose goal is to find elegant technical solutions to solve some of society’s biggest problems. He is a strong believer in decentralization and wants to work on mainstream adoption of blockchain. He is also a huge fan of almost every popular sport and loves to chat about a variety of topics.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.