The post tells why is crypto crashing in August 2024. It gives a clear idea about the factors responsible for the crash and the current market condition.

Highlights –

• During the past 3 days, the crypto market has witnessed a major downfall.
• Why is crypto crashing? It is crashing because of several interconnected factors.
• The plunge is estimated to be more than 5 billion dollars.
• It is a serious wipeout for cryptocurrency in 2024.
• Financial analysts believe that this major sell-off is indicating a fear of recession.

Why Is Crypto Crashing – An Overview

Since August 2, more than 510 billion dollars have been shed from the crypto market. There is a fear related to a serious stock market crash. The FBI has also issued a serious warning connected to crypto. The prices of various cryptocurrencies like Solana, Ethereum, and Bitcoin have seen a major drop.

It is assumed that the price crash will only get worse in the coming times.

The Main Reasons behind Crypto Crash

One of the main reasons why is crypto crashing is because of the postponement of the FOMC rate cut. A large number of outflows are seen from cryptocurrencies like Bitcoin.

The latest price of Bitcoin is 54,222 US dollars. A few days back it was getting traded for more than 60,000 US dollars. Not only Bitcoin, but many other cryptocurrencies have also witnessed a price slash.

It is also reported that Mt. Gox dispersed billions of dollars worth of Bitcoins to its creditors. This is one of the other reasons behind the price crash.

Major tech stocks are coming down and a slow growth rate is predicted in the market. It is assumed that Wall Street will see major changes shortly.

Other Points to Note about Crypto Crash

For the crypto market, the recent days have been really damaging. Bitcoin’s value has seen a downgrade of 20%. Many other cryptocurrencies have observed a collapse of 30 to 50 percent. These are likely signs of some upcoming issues.

Several other factors are also responsible for the crypto crash. The decreasing chance of Trump’s presidency is also one of them. He is a pro-crypto person. When his odds of winning the elections are low, the market sentiments also change.

The other reason could be the unwinding position of the Yen and the geopolitical tension that has been going on in the Middle East.

Why Is Crypto Crashing Conclusion

You must have got an idea by now of why is crypto crashing. It is not just the result of any single factor. In fact, various issues combined are responsible for the current scene in the crypto market.

Just the crash of Bitcoin has led to a wipeout of a sum of 600 million dollars (in leveraged longs). The total plunge of the entire crypto market is estimated to be between 500 billion to 600 billion dollars. Hence, in a fluctuating time like this make the investment decision very wisely. For more finance-related information and stories like these make sure to check out Financereview.Org.