Global Crypto Crisis Intensifies
Cryptocurrency markets continue to experience a major correction. According to analytics firm Coinglass, over $2.5 billion in crypto positions were liquidated in the past 24 hours alone. This is due to a sharp decline in the prices of major cryptocurrencies, including Bitcoin and Ethereum.
The price of Bitcoin has fallen to $37,000 - a minimum since July 2021. The Ethereum rate collapsed to $2,500, and XRP fell to $0.60. The total capitalization of the cryptocurrency market has fallen below $1.8 trillion.
The main reason for the collapse is macroeconomic factors - rising inflation, tightening of the US Federal Reserve's monetary policy, and geopolitical tensions. Market players are selling off crypto assets in an attempt to lock in losses or weather the turbulence.
According to experts, the current correction may drag on for several months. The recovery of the market will depend on the dynamics of inflation and the actions of regulators. Nevertheless, the long-term prospects for cryptocurrencies remain, as the blockchain technology continues to develop, and institutional investors are increasing their investments in this asset class.