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Crypto Market Sell-Off: What’s Triggering the 4.3% Crash Amid Global Market Chaos?
The cryptocurrency market is currently experiencing a significant sell-off, with almost all top cryptocurrencies showing bearish signals. Over the past 24 hours, the market has seen a staggering drop of 4.3%. Bitcoin has fallen by over 2.2%, Ethereum by 5.6%, XRP by 2.5%, BNB by 0.1%, Solana by 0.9%, TRON by 2.3%, and Dogecoin by 3.6%.
This sudden downturn is being attributed to the recent surge in bond yields, which has led investors to seek safety in government securities, causing high-volatility assets like cryptos to take a hit.
The US 30-year government bonds yield has seen a significant increase, jumping from 4.581% at the start of the month to its current level above 5%. The sudden rise in long-term bond yields often signals growing economic uncertainty, prompting investors to seek refuge in lower-risk assets like government securities and treasuries.
As a result, we are witnessing a classic “risk-off” sentiment playing out in the financial markets. Investors are opting for stability over potential gains, leading to a mass exodus from riskier assets such as cryptos.
While it’s true that bond yields often influence the crypto market, any shift in bond trends may eventually reverse this pressure and allow the crypto market to regain its momentum.
It’s also important to note that recent global market chaos has been characterized by uncertainty and volatility. The Federal Reserve’s secret liquidity boost has sparked concerns about inflationary pressures and a potential recession.
In conclusion, it appears that the sudden downturn in the cryptocurrency market can be attributed to the surge in bond yields and the subsequent shift towards safer assets. As investors seek stability, we are witnessing a classic risk-off sentiment that may have far-reaching implications for the crypto market’s future trajectory.
Source: https://coinpedia.org/news/crypto-market-sell-off-whats-triggering-the-4-3-crash-amid-global-market-chaos/
