Why is crypto down today has been the most questions I have received in the past 24hrs, which shows that a lot of people feel concerned and unsecured with the way crypto market is behaving in the last 24hrs.
If you have been following the crypto currency market for a while, you will recollect the all Cryptos record a major gains and crypto expert has since then, predicted that their is going to be a sharp drop in the market.
But wait! Did anyone expect this down trend to last this long?
The answer is no, no one expect it could last this longer or be as strong as it is in the last 24hrs to this present moment.
Having studied how much a lot of people feel unsecured about this movement, we have decided to reveal the possible reasons behind this strange incident that is currently happening in the crypto market.
Which Crypto Currency Experience The Downtrend?
We all know that Bitcoin is the main crypto currency and all other Cryptos are referred to as alt coins (alternative coins). As at the moment of writing this report, both Bitcoin and other alternative coins are seriously going down and this behavior has hence been tagged as free fall.
As at the moment of writing this guide, Bitcoin has crumble under it’s all time high of $50,000 per Bitcoin and as however losses by almost 20% in the last few days. This downtrend force the price on one Bitcoin to fell to as low as $48,780 according to the stat we retrieved from coinmarketcap.
After Bitcoin, Ethereum is the next biggest crypto currency and it has as well lost around 10% in the last 24hrs. Other popular coins like ripple (XRP), ADA, Polkadot, Binance Coin (BNB), Wazir(WRX) and any others are not left out in this Downtrend.
Also Read: How To Buy Safemoon On Trust Wallet
Why Is Crypto Down Today – The Reason Behind Sudden Downtrend Behavior Of Cryptos
I know you are eager to know why Crypto market is down today and we are going to reveal the possible reasons in this section of this guide.
While gathering the information for this report, we found a claim revealing the possible cause if the sudden free fall on the Crypto market and we have take our time to analyze it and pick the main point that might lead to this scenario.
The claim reveals that the cryptocurrency market is on a free fall today, because Joe Biden wants to impose 40% tax on it’s citizen cryptocurrency trading profits.
This proposed action left the stock market and cryptocurrency market to be on meltdown today because of the news.
With some back up reasons we have escalate so far, it revealed that the action was what makes Bitcoin to go down to $49,000 from $52,000 and making it to briefly touched $48,000 because of that proposed policy.
However, this is not where the rain stops, Altcoins were not left out in the melt down and this has caused a lot of panicking in the Crypto market so far.
With the reason stated above, we will advise all investors and traders to be careful with their assets and do a very deep research before taking any action on their assets.
How Can The Proposed Policy Caused The Crypto Market Down trending?
That’s a very good question, you should know the reason and the ways in which that decision can actually affect the effectiveness of the cryptocurrency market.
In crypto, we have a term called bearish movement and I have mentioned this in the earlier part of this guide.
Bearish Movement occur when any asset in the Crypto market is over sold, at this moment, we will say bears have taken over and once bears take over, the price of the assets will be left with no option than to go down and keep going down until buyers started to enter again.
For every investors that have a lot of Investment in the Crypto market, they will want to withdraw their funds before the bill get passed as the 40% taxes on all trade profits is very high and might leads to massive loss for the investors.
Once this set of people start pulling out, the drop will influence others to do same and this leads to the over sold if each assets and the price have no option than bro keep dropping until bulls take over (bulls are buyers).
What Can I Do In This Situation?
As it has been stated in the earlier part of this guide, you have control over your assets and you should keep your eyes opened on them.
We have previously advised you and still advising you to DYOR (do your own research) before taking any action towards your asset at the not.
Conclusion: If you have been asking yourself why is crypto down today, I am sure this guide has given you some things you need to know the sudden happenings and the real reason behind this occurrence.
However, you should know that this guide consists of facts retrieved from some information outlet with our personal opinion based on our analysis on the market behavior so far.
Do make your research to know where you should stand in this market situation either you are an investor or a trader.