On April 18, Bitcoin (BTC) fell below $40,000 for the first time this month and hit $38,500. As always, the prices of altcoins such as SHIB, DOGE have also experienced a pullback. So, what were the reasons behind the decline?
The crypto money market went red: Here’s what happened behind the decline
The crypto money market has been seriously affected by macro events for a while. Among them is primarily the Russian-Ukrainian war. As we have also reported as Kriptokoin.com, the expectation that Russia could attack Kiev was effective in the decline of cryptocurrencies. While developments such as the inability of people to get enough help in Ukraine and the changing seasonal conditions affect the dynamics of the war, experts think that the lack of talks between these two countries is also a sign of negativity.
On the other hand, the US Federal Reserve (FED) is also influencing the cryptocurrency market. Recently, it was reported that inflation reached the highest levels of the last 41 years. After that, the bank said it would start to narrow its balance sheet and increased interest rates. Since cryptocurrencies exhibit an inverse correlation with gold, it is argued that the rise in gold also reduces the demand for cryptocurrencies.
BTC, SHIB, DOGE, ADA: What’s the latest?
Also today is the last day to file tax returns in the US. Pantera CEO suggested that this situation may have suppressed the market to date. Therefore, it is thought that this development may be behind the pressure on prices. One of the events that most affected the market is seen as the loss of the cryptocurrency Bitcoin (BTC), which is the leader with its market value, to the level of $ 40,000.
At the time of writing, Ethereum (ETH) has lost 4.7 percent of its value, falling below $2,900. BNB was down 3.9 percent to trade at $398, while XRP tumbled 5.3 percent. Solana (SOL) fell 5.3 percent, Cardano (ADA) 6.8 percent, Terra (LUNA) 6.1 percent and Avalanche (AVAX) 6 percent. Dogecoin, which is one of the meme coins, decreased by 6.4 percent and Shiba Inu by 6.7 percent. Almost all of the cryptocurrencies, which are high with their market value, are traded on the red board.
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