The recent crypto market crash continued today, Oct. 17, as the hangover of last week’s liquidation event continued and as traders booked profits on some of the top weekly gainers. Bitcoin price retreated to $108,000, while the market capitalization of the industry fell by 2.2% in the last 24 hours.
This article explores some of the top reasons why Bitcoin and altcoins like Bless, Synthentix, Plasma, XRP, and Solana are going down today.
Crypto market crash has coincided with the stock market turmoil
One major reason why the crypto market crash is happening today is that American stocks resumed its downtrend on Thursday, with the Dow Jones and Nasdaq 100 falling by over 0.70%.
Stocks plunged despite the strong earnings by companies like Taiwan Semiconductor and ASML as concerns about regional banks accelerated. Banks like Western Alliance and Zions plunged after reporting some major loan impairments.
These loans which, were linked to fraud, came a few weeks after the collapse of First Brands, and two years after Silicon Valley Bank and First Republic went under. On the positive side, investors believe that the loans are not systemic, meaning that the industry may rebound.
The crypto market tends to have a close correlation with stocks in some instances. For example, stocks and cryptocurrencies plunged last week after the trade conflict continued.
Cryptocurrencies plunged as the liquidations hangover remained
The crypto market plunged this week as many investors remained in the sidelines following last week’s crash that led to at least $19 billion in liquidations. A liquidation is a situation where crypto exchanges shut down leveraged trades when they fall below the margin requirements.
Over 1.6 million crypto traders were liquidated on Friday, leading to at least one suicide, which happened in Kyiv, Ukraine. In most cases, cryptocurrencies tend to waver after such a big liquidation event as many traders remain in the sidelines. This situation changes when a prolonged crypto market rally happens.
Profit taking and ETF approval delay
The other main reason why the crypto market crash is happening is that investors are booking profits in some top gainers in the industry.
A closer look at the top laggards in the industry today were the top gainers during the week. For example, the Bless Network price plunged below $1 on Friday, down by 58% from its highest level this week. Before that, the Bless price was up by almost 1,000% from its lowest point this week.
Synthentix (SNX) token price plunged to $1.40, down by 45% from this week’s high. Like Bless, the SNX price was up by nearly 400% from its monthly low. Some of the other top laggards like Yield Basis, Pump, My Neighbor Alice, and Morpho were some of the top gainers earlier this week.
Additionally, the crypto market crash happened as the government shutdown continued, leading to delays in the approval of popular crypto ETFs like that of Solana and XRP. In this case, the crash also happened as Bitcoin and Ethereum ETF outflows rose, which was a sign of low demand in the market.
The post Here’s the top reasons why the crypto market crash is happening today appeared first on Invezz