Crypto Market Plummets Below $1 Trillion Amidst Rising Uncertainties and Volatility
The Global Crypto Market Cap is down by 6.56% to $930.95B at the time of writing this article. Over the past 24 hours, the overall volume of the Cryptocurrency Market has increased by 61.04% to $69.15B.
DeFi’s total 24-hour volume is $5.19B, or 7.51% of the overall Crypto Market volume. All Stablecoin volume is currently $63.54B, or 91.88% of the 24-hour volume of the whole Crypto Market. The volume of stablecoins traded has witnessed a slight increase in comparison to last week.
The price of bitcoin was trading at $19,975.16 at the time of writing. According to data from CoinMarketCap, Bitcoin’s dominance is currently 41.47%, a decrease of 0.62% from the previous day. In the last 24 hours, the price of ETH decreased by 8.33% to $1,409.62, while the price of BNB went down by 5.63% to $273.12.
In the past 24 hours, the cryptocurrency market has suffered a massive blow, with traders experiencing over $300 million in liquidations. This comes amidst various economic uncertainties, including the Silvergate Capital crisis, uncertainty surrounding the Fed, and a possible government sale of Silk Road related bitcoin.
Reasons Behind The Current Market Downturn
Recent events have given rise to concerns among investors, prompting a surge in selling activity. The catalysts for this trend include a stronger-than-expected inflation report, which cast doubt on the U.S. central bank’s earlier assertion that a disinflation trend had begun in early 2023. Even the Federal Reserve Chair, Jerome Powell, has admitted that there is much work to be done to bring inflation back to the target rate of 2%.
The fear of interest rates rising has also contributed to the selling trend. Moreover, the recent collapse of digital asset lender, Silvergate Bank, on Wednesday evening, has further fueled investors’ concerns. This has left many wondering about their exposure to the market and the stability of the financial system.
Adding to the uncertainty is the move by the U.S. Department of Justice to transfer 49,000 bitcoins seized from the Silk Road marketplace to new addresses. This has raised speculation that the government may be planning to sell this sizable stash in the near future.
All of these factors have combined to create an environment of uncertainty in the market, causing a significant increase in selling activity. While some investors are optimistic about the long-term prospects of the market, others are cautious and are choosing to sell their positions to minimize their exposure to risk.
What’s Next for Bitcoin Mining?
As the world becomes increasingly conscious of its carbon footprint, the adoption of green mining has become a trend in the Bitcoin mining industry. Investors are now beginning to recognize the positive side of Bitcoin mining and its potential to generate significant returns. The availability of various financing options for BTC mining has made it possible for even small traders to enter the mining space. This has increased competition in the industry, as more miners join the race to mine Bitcoin. The adoption of green mining has not only made Bitcoin mining more sustainable but has also attracted socially responsible investors to the market. This has helped to dispel the myth that Bitcoin mining is an environmentally harmful process, and has paved the way for a more sustainable future for the industry.