Beginning on the morning of September 22, as the value of the crypto money market fell to $ 335,345 billion with a loss of more than 5%, everyone started to wonder why it is falling. Almost all altcoins accompany Bitcoin, which has experienced a significant decrease in the last 24 hours.
The Decline in Bitcoin and Other Markets
Bitcoin has lost about 5% in the last 24 hours. Although the market did not lose its dominance as altcoins faced a steeper decline compared to Bitcoin, the price of Bitcoin fell below the $ 11,500 threshold. BTC is currently being traded in the $ 10,400 band.
According to experts, there may be several reasons behind the Bitcoin decline. The first of these reasons, according to market analysts, is the stock and gold markets that have declined with the uncertainty of the US stimulus package. It is observed that the bitcoin price is in a positive correlation with both stocks and gold.
Why Are Cryptocurrency Prices Falling?
- Increasing coronavirus concern was also felt in the markets. The increasing number of cases in the UK every day may bring the British government to a new home ban phase.
- In America, after the pandemic, which is expected to be settled this month, the aid packages are getting more and more tortuous. The eyes of both investors and market followers were turned to the statements to be made today by US Treasury Secretary Steven Mnuchin and Fed Chairman Jerome Powell. Ally Invest strategist Lindsey Bell told CNBC that the American government is “unwilling” to draft a new stimulus package. In addition, Bell emphasized that the decline in the market will not be long term.
- The Nasdaq 100 fell 8.4%, with the S&P 500 falling 6.3%, the Dow Jones Industrial Average 4.5% and tech giants depreciating. The stock and cryptocurrency markets, which exhibit a stronger unity after the pandemic, are falling simultaneously this week.
- The S&P 500 dropped for 4 consecutive days for the first time since February. According to experts, this decline is due to the effects of the pandemic as well as the upcoming US elections and prolonged stimulus package negotiations.
DeFi Coins Are Also Experiencing Shocks
DeFi tokens have also been heavily affected, with Ethereum (ETH) dropping 9% in the last 7 days and more than 8% in the last 24 hours. ETH is currently trading at around $ 342. Uniswap (UNI), which blew like the wind last week, faced a loss of about 20%. Yearn.finance (YFI), Aave (LEND), REN and Sushiswap (SUSHI) followed with losses of over 10%.
In addition to these, looking at the general picture, it is possible to see red in almost all DeFi tokens. Looking at the last 7 days, the picture looks much more depressing. YFI lost about 40% in 1 week, while Chainlink (LINK) lost about 27% and UMA about 37%.