What Is Causing The Crypto Market Volatility?

What Is Causing The Crypto Market Volatility?

2021-12-11 | Daniel Smith

What Is Causing The Crypto Market Volatility?

Fears about the impact of Evergrande's downfall on markets reappeared, leading crypto assets Bitcoin and Ethereum plunged under $49,000 and $4,100, correspondingly, in the last 12 hours. Trailing the two biggest virtual currencies, the whole crypto market cap fell by 4.2 percent to $2.27 trillion in the last 24 hours. Fitch put China's developer Evergrande Group to "limited default" on Thursday owing to non-payment of overseas bond amount due. As per Reuters, Evergrande's fails to achieve $82.5 million in interest charges attributable last month would result in a cross-default on its approximately $19 billion in international bonds, putting the developer at danger of being China’s largest defaulter – a potential that has loomed well over globe's second-largest economic system for months. Aside from Evergrande, additional reasons like ambiguity caused by the new COVID-19 variation Omicron and expectations of more Fed tapering resulting in liquidity withdrawal have also added to the crypto market's decline. To provide readers an indication, Bitcoin prices, the oldest and largest cryptocurrency that controls the path of the larger market, have fallen by 15% in the last seven days, trade at $48,207. Likewise, Ethereum, the second-largest virtual asset, has fallen by 9% and is now selling at $4,122. In an interview with Business Today, Vikas Ahuja, CEO of CrossTower India and a participant of the embryonic crypto industry group Blockchain and Crypto Assets Council (BACC), believes that numerous reasons contribute to the shifting values of crypto. Because of the events around the Crypto Bill in India, cryptocurrency values in Indian exchanges fluctuated for several hours. Furthermore, the novel Coronavirus variety known as Omnicron is upsetting global markets, with its influence seen across several markets, such as ones trading cryptocurrency.

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