Clearly, the market is experiencing another crash and there are many reasons for it. Below are the three most important to consider.
The crypto market has been a roller coaster for investors and traders alike. Due to its volatile nature, it is difficult to predict what the future holds for this industry. Will the crypto market crash? Here are the top three reasons why this could happen.
Bitcoin Failed to Break the 30,000 Mark
Bitcoin, the largest and most popular cryptocurrency, struggled to break the 30,000 price mark. After reaching an all-time high near $65,000 in April 2021, Bitcoin experienced a sharp decline. Failing to break above the 30,000 mark is a key indicator of a possible collapse.
This has happened to Bitcoin before when it failed to break above $20,000 in 2018 and $70,000 in 2021. This led to strong downtrends and the decline of the entire crypto market. Similar technical patterns exist today with fundamentals pointing to a crash.
Collapse of Cryptocurrency Exchanges Continues
Another major factor contributing to the current market downturn is the collapse of the stock markets. BlockFi, a popular crypto lending platform, is currently fighting lawsuits from its investors. Furthermore, the recent collapse of Bittrex, a popular cryptocurrency exchange, has increased uncertainty in the market.
These events caused a significant loss of confidence among investors and traders, leading to panic selling and lower prices. With more and more exchanges on the brink of collapse, it is hard to say where the market will go from this point.
Bitcoin and Ethereum Breaking Key Support Levels
Bitcoin prices failed to break the 30k mark and are currently trading around 27k with lower targets. Ethereum, the second largest cryptocurrency, has also collapsed from its strong support of $1,800. The breaking of these important support levels is a clear indication of a possible downtrend in the market.
It is worth noting that on March 2nd, Bitcoin (BTC) came down 4.5%, falling from $23,500 to a two-week low of $22,259 in the early hours of the next day, before rising to around $22,390, data shows from CoinGecko. Ethereum (ETH) did the same, and the second-largest cryptocurrency in the market fell 4.6%, changing hands at $1,569.
The last significant factor that contributed to the market crash is the removal of Metamask as an option to log in to Decentralized Exchanges (DEXs). Metamask is a popular wallet that allows users to interact with decentralized applications on the Ethereum Blockchain.
Such shady events that occur at such times trigger FUD (Fear, Uncertainty, and Doubt) in the crypto market, resulting in lower prices. The removal of Metamask has caused panic among many traders, as well as a possible market crash.
Conclusion: Will Cryptocurrencies Get Blocked?
In short, there are many different reasons why the cryptocurrency market is experiencing a crash, from Bitcoin failing to break the 30,000 price level, up to exchanges crashing and breaking key support levels. Obviously, there is a lot of uncertainty in the market.
Additionally, the removal of Metamask as an option to register with DEX has increased fear and panic selling. Although it is difficult to predict what the future holds, it is important that investors and traders remain vigilant and cautious.
By Audy Castaneda
