22262934740 Why the cryptocurrency market is crashing today: key factors behind the decline

In the last 24 hours, the cryptocurrency market has witnessed a detrimental drop of 7.9%. Almost all major cryptocurrencies have suffered the impact of the overall decline in the cryptocurrency market. Notably, yesterday, the altcoin market fell sharply from $932,235,831,241.49 to $932,235,831,241.38. The latest bearish turn in the cryptocurrency trend is considered a consequence of the drop in the US market and the strengthening of the US dollar against major currencies. Yesterday, the S&P 500 fell from around $932,235,831,245.993.96 to $932,235,831,245.909.02. However, experts believe that the bullish trend in the cryptocurrency market remains intact. Is now the time to buy the Bitcoin dip? Let’s explore.

What caused the cryptocurrency market correction?

On January 7, the S&P 500 recorded a severe one-day drop of 1.38%. Several major US stocks, such as Tesla and Nvidia, showed similar trends on the same day.

Tesla fell from $406.15 to $393.65, and NVIDIA plummeted sharply from $153.11 to $140.14.

The day before, the euro against the US dollar rose by 0.46%, the Japanese yen by 0.30%, and the Indian rupee by 0.11%, demonstrating the growing strength of the US currency against major currencies.

Reports indicate that these factors have negatively influenced the cryptocurrency market, causing it to show a sudden reversal.

Market outlook for options

Reports indicate that short-term implied volatility has increased slightly but remains low. Reports add that the options skew and futures appreciation have not shown noticeable changes. Meanwhile, market indicators suggest that expectations for future volatility are stable.