Here’s What Led To The Crypto Market’s $ 300 Billion Sale Today

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The cryptocurrency market recorded a strong correction earlier today, where the top 10 cryptocurrencies lost 7-10% of their market cap in a matter of minutes. The market correction resulted in the withdrawal of nearly $ 300 billion from the crypto market, with its valuation rising from $ 3 trillion to $ 2.65 billion at the time of writing. This is the second flash crash in two weeks despite many market experts predicting November to be a bullish month.

Source: Coin360

Bitcoin (BTC) wiped out the majority of its gains from November as the main cryptocurrency’s price fell to nearly $ 60,000. The major cryptocurrency traded above $ 66,000 in the morning before posting a weekly low of $ 60,583. As seen on the monthly candle, the market’s massive sell-off caused it to turn from red to green.

Source: TradingView

Outside of BTC, major altcoins including Ether saw a more pronounced price drop as ETH fell to a daily low of $ 4,271. However, the ETH monthly chart still has a green candle thanks to its gigantic rise this month, dropping from just under $ 4,000 to define several new ATHs.

Source: TradingView

Stables aside, the majority of the volatile crypto market has bled red and wiped out major gains in November. Almost $ 500 million in leveraged positions were also liquidated.

Has the passage of a $ 1 trillion infrastructure bill erased the market?

The traditional financial market suffers due to high inflation caused by overprinting by federal authorities, but governments continue to print more money to limit the damage caused by printing money. Many believe the sudden decline in the crypto market is due to the approval of the controversial infrastructure bill that became law earlier today.

The crypto-taxation side in particular split the Senate at the time of the discussion, where those unfamiliar with a decentralized market called for a total surveillance system and impossible tax reporting requirements, while a few Republican senators s ‘are opposed tooth and nail and have suggested for a more inclusive law.

Disclaimer

The content presented may include 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.

About the Author

With a degree in engineering, Prashant focuses on the UK and Indian markets. As a crypto-journalist, his interests lie in the adoption of blockchain technology in emerging economies.

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