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BTC Crashed More than 30% in the Past 24 hours. But Why?

There could be one or more reasons for the market crash.

Volatility is an integral part of the crypto market.

Currently, at 1:14 PM UTC, BTC is trading at 47,074 USDT, more than 17% down.

Numerous events have taken place this week. It could be either one or more of all these events to be the underlying reason for the crypto market crash.

What all these factors are?

Spread of the Omicron variant

A new variant of the dreaded coronavirus pandemic has emerged and threatened the global economy. Restrictions on movement are becoming more stringent, so global supply chains would be affected. The fear of the pandemic and the supply chain disruption could have triggered the sell-off.

Evergrande Collapse

The Chairman of the beleaguered realty company Evergrande, Mr Hui Ka Yan, has been summoned by the Guangdong province Government. The company has revealed that it might not have sufficient funds to repay its creditors.

Numerous companies in the world will not be able to recover their money and their business would be affected.

Source: HKEXnews

Fed Tightening

The International Monetary Fund (IMF) has advised the US Federal Reserve to keep in check inflation and tighten the monetary policy of the country. Given the pandemic, inflation can become a big problem.

US Congress Hearing with Crypto Companies

Several crypto companies of the US have been summoned to testify before the House Committee on Financial Services on December 8. It could lead to major changes in the crypto market. Investors might have seen this as a red flag and began selling their assets.

Whale Action

Many people believe that Whales (investors who have accumulated a vast amount of crypto assets) may have manipulated the market. Whales sell or buy the assets in large amounts creating an asymmetry between the orders. This results in either a sudden rise or crash.

It is very difficult to correlate and find the root cause of the crash at the moment. The reason could be a single factor or more.

What do you think caused the market crash? Comment below.

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