The Crypto Market Plummeted Sharply Again Last Night! Why?

Last night, the crypto market experienced a significant drop, raising many questions among investors and analysts. Several global events that occurred over the past 24 hours seem to have contributed to this decline. Which ones?

Why did the crypto market crash again last night?

This night, the crypto market experienced another notable decline, with Bitcoin falling to $62,200, registering a decrease of 1.48% over the last 24 hours. Several factors contributed to this sudden decline, which we will explore in detail.

• Firstly, the surge in Chinese stocks.

Indeed, investors have been attracted by the promising returns of Chinese stocks, diverting funds from cryptos like Bitcoin. This reallocation of investments caused a temporary drop in the crypto market, as investors seek to maximize their profits by turning to more stable and potentially more lucrative markets.

• Secondly, the loss of short-term investors.

Short-term BTC holders lost 6 billion dollars in a week, dropping from 17 to 11 billion. This increased volatility has likely contributed to the crypto market’s fall, as investors reassess their positions in the face of the current economic uncertainty.

• Finally, geopolitical tensions.

Yesterday, October 7, 2024, marked the anniversary of the deadliest attack on Israel by Hamas. While this somber anniversary does not have a direct impact on the crypto market, the conflict it represents generates uncertainties among investors, who are now adopting a more cautious approach towards cryptos.

Soon a return to normal?

The crypto market’s drop could be temporary. Analysts predict that it could recover once the Chinese stock market stabilizes, although uncertainty remains. Investors must remain vigilant in the face of global economic fluctuations and geopolitical tensions that continue to influence financial markets.

Finally, the crypto market’s fall last night can be attributed to a combination of Chinese, geopolitical, and economic factors. These elements led investors to reassess their portfolios and reduce their exposure to cryptocurrencies, thus causing a temporary market decline.