Why the cryptography market collapses today

The cryptocurrency market has gone through a difficult period, Bitcoin and other major parts losing their recent momentum. After weeks of good performances, total market capitalization has dropped by around 3 %, now establishing itself at around 3,540 billion dollars. This drop comes just after Donald Trump Donald Trump Donald Trump is a former American president, politician, businessman and media personality, who was the 45th President of the United States between 2017 and 2021. Trump obtained a baccalaureate in economics in the University of Pennsylvania in 1968. Trump won the 2016 presidential election. Election as a candidate of the Republican Party against the candidate of the Democratic Party Hillary Clinton while losing the popular vote. As president, Trump has ordered a ban on traveling to citizens in several Muslim majority countries, diverted from military funds to the construction of a wall on the border between the United States and Mexico and implemented a policy of separation of families. Trump remained an eminent figure of the Republican Party and is considered a probable candidate for the 2024 presidential election. President The presidential inauguration, many of which expected it to bring good news to the world of cryptography.

Why was Trump’s inauguration

Before the inauguration, Trump’s potential policies in favor of cryptography aroused enthusiasm. However, his speech did not mention cryptocurrencies or blockchain technology at all, leaving disappointed investors. This lack of attention paid to cryptography led to speculating that the event would have become a moment of “information sale”.

The enthusiasm quickly turned into concern, which attenuated the optimism that had previously brought up the prices.

Bitcoin Etf outputs weigh on the market

In addition to the market pressure, there was an important outing of ETF Bitcoin. As of January 22, around $ 95.62 million in Bitcoin ETF outputs were reported, mainly from grayscale and Bitwise funds, excluding BlackRock data.

These capital outlets align with the trend to weaken the market, contributing even more to the global decline.

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Liquidations exert increased pressure

The market has also experienced significant liquidations, which are added to the downward trend. In the past 24 hours, $ 243 million in positions have been liquidated, long traders having been the most affected, at 192 million dollars. The largest liquidation, valued at $ 5.93 million, took place on the OKX scholarship.

Bitcoin decline and other cryptos

Bitcoin, the largest cryptocurrency, had trouble maintaining his earnings. He dropped 2.9% to $ 102,600 after briefly reached a record of more than $ 109,000 earlier this week.

Other major cryptocurrencies such as Ethereum, XRP and Solana also dropped by 3 to 4 %, while the pieces even such as Doge, Shib, Trump and Pepe have experienced larger decreases from 5 to 10 %.

With the evolving market, it remains to be seen if the world of cryptography can regain foot or if new turbulence is coming.

Faq