The cryptocurrency market has experienced a sharp decline in the last 24 hours, the global market capitalization of cryptography fell from more than 2.4% to 3.78 billions of dollars. The best cryptocurrencies like Bitcoin and Ethereum have not been spared the slowdown. Bitcoin has dropped by more than 2% and is currently negotiated at around $ 115,957, while Ethereum has slipped more than 3.6% to $ 3,717.
Altcoins took an even harder blow. Solana (soil) fell by almost 4.8% at a price of $ 171, while Cardano (ADA) and Dogecoin (DOGE) fell by 4.89% and 5.87% respectively. XRP also dropped approximately 3.7%. The current lateral action through many tokens pushed the Altcoin season index to 37 out of 100, which means that bitcoin continues to dominate market attention.
Why do cryptos fall today?
This slowdown has been widely triggered by a macroeconomic uncertainty, especially after the American federal reserve decided to maintain unchanged interest rates while issuing a severe warning regarding the slowdown in economic growth. The markets were briefly rallied after the White House published a cryptographic policy report which put pressure for lighter directives of the dry, but this quickly fades while the message of the Fed was beginning to sink.
Adding to pressure, total liquidations on the cryptography market have reached nearly $ 631.98 million. When global economic signals become down, capital tends to leave the risky assets like altcoins first. Crypto no longer operating in a vacuum, the feeling of the market is shaped by the same global forces that stimulate actions and raw materials.
As of August 1, the aggressive pricing strategy of President Donald Trump began to take effect. Although prices are traditionally a concern for traditional markets and international trade, their training effect is now increasingly felt in cryptographic markets. Prices often trigger inflationary pressures and destabilize fiduciary currencies, conditions that sometimes push investors to bitcoin and other digital assets as a cover. However, in the short term, these sudden shocks often lead to liquidity cracking and the sale of panic, especially in risky assets such as altcoins.
