Why Crypto Market Crashed Today? Here Are the Top 6 Reasons – NewsTo
Why Crypto Market Crashed Today? Here Are the Top 6 Reasons

Why Crypto Market Crashed Today? Here Are the Top 6 Reasons

Lark Davis, a popular crypto analyst and content creator, recently highlighted six potential factors that could impact cryptocurrency markets, specifically Bitcoin and Ether, in the coming months.

Mt.Gox Creditors’ Deadline

On March 10, the deadline for the Mount Gox creditors to receive their coins back is set to take place. A total of 142,000 Bitcoins will be entering the market over the coming months, with two groups of creditors controlling about 20% of that Bitcoin already stating they’re taking back 90% of what they’re owed in Bitcoin and 10% in cash. However, the fate of the other 80% of those Bitcoins is still uncertain. While some may hold onto their coins, selling these coins could cause short-term price turbulence.

Inflation Data Release and Federal Reserve Meeting

The coming release of inflation data on March 14th and the Federal Reserve meeting on March 22nd will also have an impact on the market. If inflation spikes unexpectedly, it could cause bad news for the markets. However, if inflation drops, the market will likely be optimistic. How the Federal Reserve approaches interest rate hikes on the 22nd will also be affected by inflation rates.

Regulatory Insanity

The regulatory crackdown on crypto by the SEC in the USA has been one of the most insane FUDs in recent weeks. They are attacking staking, stablecoins, and exchanges, as well as seeking to de-bank crypto companies in the USA. The official ruling from the SEC is expected to be released soon, and many are expecting more bad stories to come.

Silver Gate Bank Collapse

Silvergate Bank was the go-to bank for many cryptocurrency exchanges and major market players for on and off-ramping fiat currency in and out of crypto. They were massively exposed to FTX and lost about a billion dollars in Q4 of 2020. While the overall impact on crypto is not expected to be that severe, the story could still have the potential for unexpected chaos if some players get caught lying about their exposure.

Tether FUD

Following the SEC’s hit on the B USD stable coin and its issuer, Paxos, a Wall Street Journal article alleges that Tether used fake documents to open up bank accounts for their dollar deposits. Tether has long been a sticky issue in crypto, and if it were to collapse, it would totally screw the markets. However, USD C and Di would take over market share from Tether, but the impact in the short term would be brutal.

Ethereum’s Shanghai Upgrade

In April, Ethereum’s Shanghai upgrade is expected to take place, which has sparked concerns around the potential unlock and sell-off of millions of Ethereum currently staked. While some validators may exit the market, it will take about a year for all of them to get out if they want to. Thus, the potential impact on the market is expected to be limited.

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