Crypto crash reason (30th June): The global crypto markets are crashing again since yesterday after days of remaining sluggish with minor gains. In the last 24 hours, the Global crypto market cap has crashed to $872 billion, down 3.71% over the last day, according to data on CoinMarketCap at the time of updating this article (12.52 pm, India time). As per analysts, there are several reasons behind the falling prices in crypto markets. Here’s a look at some of the most prominent triggers driving crypto markets and prices of top coins down:
- Weak global cues: The cryptocurrency markets are reflecting the downturn in global financial markets. The US equity markets traded low on Tuesday.
- Falling Bitcoin: The top cryptocurrency has once again fallen below $20,000 level once again. At the time of writing, BTC was trading at $19,384, down 3.11% in the last 24 hours. BTC may now find support at $14,000. BTC’s weekly RSI had hit an all-time low a few weeks back and hasn’t recovered much from there.
- Unusual BTC trade trend: The Bitcoin trade charts show the top cryptocurrency has closed below the 200-week Moving Average (MA) for the second week in a row. BTC analysts have found this as an unusual and unheard-of till now. The current weekly MA of Bitcoin is around $22,550.
- Crypto sell-off: While the global crypto market cap and top coin prices are falling, the market volume has jumped 3.62 over the last 24 hours, indicating crypto sell-off by traders.
- 1% TDS in India: A new tax rule in India from tomorrow will mandate the deduction of 1% TDS on every crypto purchase. The rule is expected to badly hit crypto trading in India as many exchanges are still trying to figure out how to deal with the new rule.
- Data breach at OpenSea: One of the largest global NFT marketplace OpenSea has reported a data breach. An employee of the platform has discovered that email management platform Customer.io leaked the list of OpenSea customers to an outside party.
- Coinbase Selling Geo-Location Data: One of the largest crypto exchanges Coinbase is reportedly selling geolocation data to the U.S. Immigrations and Customs Enforcement agency (ICE). The shared data allegedly include details of crypto users, including their “historical geo-tracking data” and transaction history, according to a CoinDesk report.
- Genesis faces massive loss: Crypto lending firm Genesis is reportedly facing potential losses worth hundreds of millions of dollars due to exposure to over-leveraged hedge fund Three Arrows Capital Babel Finance, a Hong Kong-based crypto lender, according to a CoinDesk report.
- Hedge Funds shorting USDT: Reports suggest that various hedge funds are betting against Tether (USDT), which is currently the largest stablecoins. There are are concerned about the stable coin’s backing and systematic risks. According to ConiDesk, the short positions on USDT are worth hundreds of millions of dollars. Concerns over USDT’s systematic risks have increased since the TerraUST implosion last month.
- Three Arrows debacle: Liquidation of crypto hedge fund Three Arrows Capital has been ordered by the British Virgin Islands. The firm is facing a loss of $400 million and possible insolvency, according to reports.
(Cryptos and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Please consult your financial advisor before making any investment decision)
