Why Did Crypto Crash Today?

Bittime - The crypto market today experienced a sharp decline, with total losses reaching 7.9% in the last 24 hours. All major cryptocurrencies, including Bitcoin and other altcoins, felt the negative impact of this major drop. 

However, even though this decline looks worrying, many experts believe that the long-term bullish trend remains intact. 

So, what is causing crypto to freefall today? Let's take a closer look at the factors that cause it crypto crash this time and how investors should respond to this situation.

Factors Behind Today's Crypto Crash

The main cause of the crypto market decline this time comes from the increasingly worsening global economic situation. One of the biggest factors was the decline that occurred in the US stock market. 

On January 7, the S&P 500 Index experienced a significant decline of 1.38%, with large stocks such as Tesla and Nvidia also experiencing sharp declines. 

Tesla fell from $406.15 (around IDR 6,550,000) to $393.65 (around IDR 6.3 million), while Nvidia dropped from $153.11 (around IDR 2.4 million) to $140.14 (around IDR 2.2 million) .

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In addition, the strengthening of the US Dollar against other major currencies, such as the Euro, Japanese Yen and Indian Rupee, also had a negative impact on the crypto market. The US dollar strengthened 0.46% against the Euro, 0.30% against the Yen, and 0.11% against the Rupee. 

This increasing dollar strength has reduced the attractiveness of investing in high-risk assets, such as crypto. This decline was also accompanied by a correction in altcoin prices, which were previously worth $1.49 trillion (around IDR 24,000 trillion), now down to $1.38 trillion (around IDR 22,000 trillion).

In addition to these macroeconomic factors, reports from the options market also show slightly increased volatility, although it remains at relatively low levels. The futures and options markets are also showing indications that despite price corrections, future volatility is likely to stabilize.

Conclusion

Even though today's crypto price decline is quite sharp, the long-term view still shows that the crypto market, especially Bitcoin, has the potential to bounce back. 

This decline was more influenced by external factors related to global economic conditions, not due to fundamental problems in the crypto world itself. 

Therefore, crypto investors do not need to panic and can instead see this as an opportunity to buy Bitcoin at lower prices, considering the bullish outlook that remains.

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FAQ

1. Why is Bitcoin price down today?

The decline in Bitcoin prices was caused by global macroeconomic factors, including a sharp decline in the US stock market and the strengthening of the US dollar against other major currencies.

2. Is this a good time to buy Bitcoin?

For long-term investors, this decline in Bitcoin prices could be a strategic opportunity to buy at lower prices, considering its large growth potential in the future.

3. What's happening with altcoins today?

Altcoins also experienced significant price declines, along with a decline in overall market capitalization.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference 

coinmarketcap, Coinmarketcap.com, accessed January 8, 2025.

Coinpedia Why the Crypto Market Is Crashing Today: Key Factors Behind the Drop, accessed January 8, 2025.

Author: Y