The global crypto market cap has dropped in valuation. This is a result of massive bearish sentiments permeating the crypto space. The industry’s value was at $921 billion at the start of the current intraday session.
As of the time of writing, it retraced below $900 billion. The massive decrease across the sector has many shocked as they never expected price action to go this way What could be the case with the most recent drop?
The Consumer Price Index
The Consumer Price Index is an essential tool in predicting inflation. During the last release of this data, it was at 6.3%. However, the release today points indicates that CPI increase by 0.2%
The chart above further explains the severity of the current situation. We observed that this index is at an all-time high which may be one of the causes of the FUDs we are seeing across the crypto market.
In response to this development, every traditional instrument like stocks and indices plummeted. For example, Tesla stocks dropped by more than 6%. S&P also recorded a notable decrease in worth.
On the crypto market, the top 100 were painted in red. Cryptocurrencies like Bitcoin and Ethereum both lost more than 7%. Nonetheless, recovery is imminent as we expect small rallies any moment from now.
Crypto Derivatives Come Alive
Due to the fact that most cryptocurrencies were trading sideways, the derivatives market was not active as it used to be. However, this changed as more long positions met their ends. Over the last four hours, more than $170 million was REKT.
This makes up more than 60% of the total liquidation($256 million) over the last 24 hours. This is the first time since September 21 that the market is seeing such massive data and the bulls accounted for almost 90% of the total funds.
Following the massive drop in the worth of these crypto asset, we may reversal within the next 24 hours.
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