Why Cryptocurrencies Dropped Like a Rock Today
Cryptocurrencies had a very rough start to the week on Monday, some dropping 10% or more. There's generally a "risk-off" trade taking place where investors sell risky assets to acquire more stable assets, and that tends to disproportionately hurt cryptocurrencies. There's also some fear that the financial markets are facing a looming crisis, and if that craters asset values, including in crypto, traders could panic-sell or be forced to sell because of margin calls, causing a cascading market impact if.
As of 10:30 a.m. EDT, Bitcoin (CRYPTO: BTC) has fallen 7.6% over the last 24 hours, Ethereum (CRYPTO: ETH) is down 8.9%, Solana (CRYPTO: SOL) has dropped 10.5%, and Cardano (CRYPTO: ADA) is down 8.6%. Smaller crypto assets have fallen even further, so the drop is widespread in the crypto industry.
Image source: Getty Images.
Source Fool.com
