Bitcoin isn’t the only crypto to be falling now. Stablecoins have dipped too. And now altcoins are falling drastically. Crypto crash is massive, to say the least.
If you think BTC going under $30,000 is something catastrophic, wait to see what’s going on with other cryptocurrencies.
At the time of writing, Bitcoin is worth around $28,100. While Tether (USDT), the most popular stablecoin out there, is almost de-pegged with US Dollar ($0.95).
But altcoins have suffered a much more impressive bloodbath. No wonder, many investors are simply mortified.
Crypto crash is gaining tempo with altcoins
Most altcoins are in the red at this time. Let’s take a look at some of the most interesting cases.
Avalanche (AVAX) has plummeted to 34% or under $32 and it even crashed below $28. This is far worse than its outspoken slump in August 2021.
Solana (SOL) is now down by 26% to around $52.
Terra’s stablecoin UST has obviously almost drowned it sister token LUNA, which suffered a massive slump at 97% or below $1.
Cardano (ADA) also slid down by 16% or $0.56. This is a disastrous dip, ADA fans have not seen before.
Polkadot (DOT), one of the most popular altcoins, has also crashed to around 24% over the past 24 hours, it’s about $9 at the time of writing.
Popular meme coins have also taken some heavy hits.
Dogecoin (DOGE) is down by 23%, while Shiba Inu (SHIB) has lost over 27% in the past 24 hours.
The outspoken ApeCoin (APE) is falling even more rapidly and has scraped 37% off its market value over the past day. The token that some people claimed to be “the new Bitcoin” now changes hands for $5.90. It’s roughly a 85% decline compared to $39.40 price following its launch in March of this year.
Why is crypto market crashing?
There many theories as to the reason that might have caused such a massive crypto crash.
Most obvious include rising inflation, geopolitical crises, and concern over tighter monetary policy by the US Federal government.
A few days ago The Fed delivered the first-rate hike in 22 years. The government signaled more rate increases are appropriate and the balance sheet runoff will begin in June. This is to respond to the highest rates of inflation seen since 1980s. Inflation rose to 8.5% in March, which is obviously too much for the economy to keep going calmly.
The crypto market has been increasingly tracking the stock market lately, which combined with more mainstream adoption and the slumping prices we’ve seen to start the year, makes it even more intertwined with macroeconomic factors. And this is how the current crypto crash was born.
