Bitcoin, the largest cryptocurrency by market cap, also dropped below its critical support of $37,000 and is trading at $36,857 at the time of writing. Thus, BTC has erased about $ 3,000 over the past 24 hours. Its market value also slipped to just under $700 billion. So, what were the reasons behind the decline?
Bitcoin and altcoins are in free fall!
Solana joined Bitcoin’s freefall along with other cryptocurrencies on Tuesday after becoming one of the few cryptos to stand in the green on a red day in the crypto market on Monday. Solana is down almost 12% after hitting $94.52 just 24 hours ago after a 6 percent bull run. It’s changing hands at $83 at the time of writing. Bitcoin has fallen 6 percent in the last 24 hours to trade at $ 36,857.
Global markets, including cryptocurrencies, have been plagued with uncertainty lately as Russia-Ukraine tensions continue to make the headlines. Terra was the latest of the top 10 cryptocurrencies to join the red zone, down 3.2 percent on Tuesday, trading at $49.09 at the time of writing. Those among other major cryptocurrencies also fell by over 8 percent. Ethereum (ETH) has lost 8 percent in the last 24 hours, Binance Coin (BNB) has lost 9.1 percent and XRP has lost 14.2 percent. Cardano (ADA) fell 14.6 percent and Solana (SOL) fell 13.7 percent.
What is behind the fall?
The latest drop came amid reports that Russian President Vladimir Putin had recognized Ukraine’s rebel areas as independent and ordered troops to move as war fears escalated. It is unclear whether the movement of Russian troops marked the beginning of the invasion of Ukraine. However, this situation certainly worries the markets.
Wu Blockchain, known as a Blockchain journalist, also tried to explain the latest situations in the market. Wu drew attention to the change in the stock markets. According to Wu, Goldman Sachs predicts the Nasdaq will experience a potential downside move of 9.6 percent. The Nasdaq is also seen as one of the most linked indices with the cryptocurrency market.