Today, the cryptocurrency market witnessed a significant downturn, with Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) leading the plunge. This comes after a profitable February, leaving investors and traders wondering about the underlying causes of this sudden decline. Let's delve into the factors contributing to the recent market crash.
Market Overview
Data from Coingecko and Coinmarketcap, backed by Binance, reveals that the total global cryptocurrency market capitalization plummeted by approximately 7.7 percent, hovering around $2.5 trillion during the early London trading session on Tuesday. Moreover, over the past 24 hours, more than $526 million has been liquidated, with long traders constituting over $442 million of this amount.
Reasons Behind the Downturn
Pre-FOMC Risk Off:
With the United States Federal Reserve scheduled to announce benchmark interest rates on Wednesday, anticipation and uncertainty loom large. Recent Consumer Price Index (CPI) data indicating uneased inflation have intensified market jitters. While economists predict the Fed will maintain the 5.50 percent interest rate, there's skepticism regarding their stance on hiking rates. In response, cryptocurrency traders are de-risking their positions to avoid potential forced liquidations, contributing to the market downturn.
Pre-Halving Correction:
Following a period of notable profits driven by the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, a correction was anticipated to ensure a healthy market environment. This pre-halving adjustment aims to stabilize prices after a prolonged period of bullish activity, reflecting a natural ebb and flow in market dynamics.
Altcoin and Meme Coin Sell-Off:
The altcoin market and meme coin sector have witnessed substantial gains recently. However, with new meme coins emerging and gaining traction, profit-taking became inevitable. This wave of selling pressure, particularly in altcoins and meme coins, has contributed to the broader cryptocurrency sell-off.
Outlook and Implications
Bitcoin's USD derivative daily chart has indicated short-term weaknesses, with prices dropping below the critical support range between $64,500 and $65,266 in the past 24 hours. Consequently, the coming weeks are expected to be characterized by heightened volatility and uncertainty not only for Bitcoin but also for the entire crypto market.
Conclusion
While market downturns are part and parcel of the cryptocurrency ecosystem, understanding the underlying factors driving such corrections is essential for investors and traders. The current downturn, influenced by pre-FOMC risk-off sentiment, pre-halving adjustments, and profit-taking in altcoins and meme coins, underscores the inherent volatility of digital assets. As the market navigates through these fluctuations, maintaining a balanced perspective and closely monitoring market developments will be key for navigating the crypto landscape effectively.

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Tips always welcome

Are you a beginner looking to dive into the exciting world of crypto trading, even with a modest budget of $100? Look no further!
This step-by-step guide will walk you through the process of getting started in crypto trading, with a particular focus on crypto trading in India. Let’s embark on this thrilling journey together:
1. Educate Yourself:
– Familiarize yourself with the basics of crypto trading for beginners. Understand key concepts like blockchain, cryptos, and how trading works.
– Explore crypto trading strategies for beginners to gain insights into different approaches and techniques.
2. Choose a Reliable Crypto Exchange:
– Select a reputable crypto exchange that caters to users in India, ensuring it supports fiat-to-crypto trading pairs.
– Look for exchanges that have user-friendly interfaces, robust security measures, and a variety of available cryptos.
3. Complete the Verification Process:
– Sign up for an account on the chosen exchange and go through the verification process, providing the necessary documents and information.
4. Deposit Funds:
– Deposit your initial investment of $100 into your exchange account. Choose from various deposit methods available, such as bank transfers or debit/credit cards.
5. Research and Select Cryptos:
– Research different cryptos available on the exchange and analyze their performance, market trends, and potential for growth.
– Consider diversifying your portfolio by investing in a mix of established cryptos like Bitcoin and Ethereum, as well as promising altcoins.
6. Start Crypto Trading:
– Decide on a trading strategy that aligns with your goals and risk tolerance. Whether you choose day trading, swing trading, or any other approach, stick to your plan.
– Execute your trades, buying and selling cryptos based on your strategy and market analysis.
7. Monitor and Manage Your Trades:
– Regularly track the performance of your trades and stay updated with market news and events that may impact the crypto markets.
– Set stop-loss orders to limit potential losses and take-profit levels to secure profits.
– Keep a journal to track your trades, and improve upon the ones that went bad to improve your profit potential in the future!
Remember, starting with $100 in crypto trading is just the beginning. As you gain experience and potentially generate profits, you can gradually increase your investment. Stay disciplined, continuously learn, and adapt your strategies based on market conditions.
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Embark on a journey of financial wisdom as we unveil the ultimate secret to success in the exhilarating world of cryptocurrency: taking your profits! Learn from the lessons of past bull markets and discover why selling your cryptocurrencies at the right time is the key to unlocking incredible gains.
Intriguing insights reveal that it's always better to sell too early than too late, ensuring that you seize the opportunity to secure your wealth before it's too late. Experience the exhilaration of knowing that you've made the right move, avoiding the regret that often accompanies delayed action.
Revolutionize your selling strategy with progressive methods designed to maximize your returns. Imagine setting yourself five selling tiers, each representing a 20% profit-taking opportunity during a significant market surge. With disciplined execution, you'll harness the power of strategic selling to propel your investments to new heights.
Elevate your crypto investment game with a steadfast commitment to disciplined decision-making. Remember, the ultimate goal is to generate profits, so don't hesitate to capitalize on your gains when the opportunity arises. This fundamental principle is the cornerstone of successful investing in the crypto sphere.
Disclaimer: The views expressed in this post are solely my own opinion, reflecting years of experience and insight gained from navigating the ever-changing landscape of cryptocurrency investment.
Thank you for embarking on this captivating journey with me. If you found this article valuable, show your support by liking, follow, commenting, and sharing with your network. Together, we can unlock the secrets to financial prosperity in the dynamic world of cryptocurrency! 🚀