What happened to Crypto Market today? What made market crash? All you need to know

Cryptocurrency investors sold off their digital assets on Saturday as the global crypto market plunged by over 17%. As much as $2.4 billion was liquidated earlier today, which is the largest depreciation since September. World's largest cryptocurrency, Bitcoin fell to $47,164.64 down but over 16% in the last 24 hours. Among other cryptocurrencies, Ethereum also followed Bitcoin to dive by over 15%, sinking as low as $3848.23 in a day.

While the market has streamlined since the steep fall earlier this morning, the total crypto market cap fell from $2.6T on Friday to $2.07 on Saturday. The total market value touched $3 trillion last month, for a very short time. As an observable pattern, the Bitcoin price drop is seldom accompanied by a price drop in other cryptocurrencies. There have been multiple developments in the global market, that could have contributed to the crypto crash today. 

What happened to crypto market today?

Largest evaporations since September 2021

The cryptocurrency market witnessed one of the largest wipeouts in a few months, where assets worth $2.4 billion were liquidated. In the last 24 hours, the trading volume of cryptocurrency in the global market has surged to over $218 billion, which is an 80% increase. The overall market cap of crypto on December 4 has plummeted to $2.07T, which is over 17% down from the market cap on December 3, 2021. It simply means that due to ear of the depreciation of digital assets, investors have been trading to secure profits or simply exit the market to avoid total loss in case of a ban or other restrictions. 

Here are the possible factors that could have caused the crypto crash

A popular question among netizens at this point is why is crypto crashing. Multiple factors might have led to the crypto market crash. The year is about to end and the holiday season is right around the corner in most parts of the world. Investors who had put their money in several digital coins would like to reap profits ahead of the Holiday season. Besides, the mercurial view of governments around the world proposing to ban cryptocurrencies leaving some exceptions could have created a state of panic among investors. Another factor that has an impact on the global stock market, as well as the cryptocurrency market is the arrival of a new variant of the Coronavirus, i.e. Omnicron. These are some of the factors that might provide answers to what made crypto market crash today. 

Indian government standing against Bitcoin and other private cryptocurrencies

Over the last month, the Indian cryptocurrency market has been experiencing sharp falls. These falls have been accompanied by the Central Government's public statements regarding the banning of private cryptocurrencies in India. The Winter session of the Indian Parliament is about to witness The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. As the session is coming closer, panic-struck investors are drawing their assets, resulting in sharp falls. Most recently, the Union Finance Minister of the country, Nirmala Sitharaman clarified that the ministry has no plans to recognise Bitcoin as an official currency.