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The cryptocurrency market is at it again with its volatile&nbsp; and unpredictable nature. Major cryptocurrencies such as <a href="https://coingape.com/price/bitcoin" rel="noopener noreferrer nofollow">Bitcoin</a> (BTC) and <a href="https://coingape.com/price/ethereum" rel="noopener noreferrer nofollow">Ethereum</a> (ETH) have witnessed a decline in their values of 3.76% and 3.03% respectively.&nbsp; The global cryptocurrency market value stands at $2.37 trillion, showing a decrease of 4.28% in the past 24 hours. The total trading volume reached $84.52 billion, which is a rise of 17.14%. This indicates a substantial trading activity going on.&nbsp; Presently, Bitcoin, the leading cryptocurrency, holds a market dominance of 53.42%. This article explores the causes of the current crypto market downturn, examining the interaction of various factors that have led to this abrupt and extensive drop.
<h2 id="strong-reasons-behind-the-crypto-market-crash-today-strong">Reasons Behind the Crypto Market Crash Today</h2>
Here’s a breakdown of the key reasons behind the sudden drop of the entire crypto market.&nbsp;
<h3 id="b-1-geopolitical-tensions-in-the-middle-east-b">1. Geopolitical Tensions in the Middle East</h3>
The crypto market decline is occurring against the backdrop of escalating geopolitical tensions in the Middle East. Recent military strikes by the <a rel="noopener noreferrer nofollow" href="https://www.iranintl.com/en/202404244671" target="_blank">Israeli</a> military hit 40 sites in Southern Lebanon. This has added to the overall atmosphere of uncertainty, prompting investors to seek safer assets.
<h3 id="b-2-liquidation-of-long-positions-b">2. Liquidation of Long Positions</h3>
The sharp price drops in Bitcoin and Ether prompted widespread liquidation of long positions across the market. The market experienced liquidation of long positions worth $87.61M in 12 hours, according to <a rel="noopener noreferrer nofollow" href="https://www.coinglass.com/LiquidationData" target="_blank">Coinglass</a>. The total liquidations amounted to $102.22M with short liquidation taking a share of $14.61M.&nbsp;
Bitcoin recorded a liquidation of $37.83 million worth of long positions, while Ethereum witnessed $34.17 million, in 24 hours. In the past 24 hours , 94,632 traders were liquidated , the total liquidations comes in at $211.97 million. The largest single liquidation order happened on OKX – ETH-USD-SWAP value $5.66M.&nbsp; This mass liquidation exacerbated the downward pressure on prices.
<figure id="attachment_193467" aria-describedby="caption-attachment-193467" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-193467" src="https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-25-091233.png" alt="Total Liquidation Chart" width="3442" height="1007" srcset="https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-25-091233.png 3442w, https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-25-091233-300x88.png 300w, https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-25-091233-1224x358.png 1224w, https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-25-091233-768x225.png 768w, https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-25-091233-1536x449.png 1536w, https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-25-091233-2048x599.png 2048w, https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-25-091233-150x44.png 150w" sizes="(max-width: 3442px) 100vw, 3442px">
 <figcaption id="caption-attachment-193467" class="wp-caption-text">
 Source: Coinglass
 </figcaption>
</figure>
&nbsp;
<h3 id="b-3-arrest-of-samourai-wallet-founders-b">3. Arrest of Samourai Wallet Founders</h3>
The co-founders of cryptocurrency mixer<a rel="noopener noreferrer nofollow" href="https://www.justice.gov/usao-sdny/pr/founders-and-ceo-cryptocurrency-mixing-service-arrested-and-charged-money-laundering" target="_blank"> Samourai Wallet</a>, Keonne Rodriguez and William Hill, have been arrested on charges of money laundering by the United States Justice Department. Rodriguez and Hill face charges of conspiracy to commit money laundering and operate an unlicensed money transmitting business, with potential prison sentences of up to 20 years and five years respectively. 
The DOJ alleges that Samourai Wallet facilitated illegal transactions totaling over $2 billion and aided in money laundering activities, making millions in fees from their services.
The news of the arrest has sent shockwaves through the crypto community, triggering a wave of uncertainty among investors.
<h3 id="strong-4-post-halving-volatility-strong">4.&nbsp; Post-Halving Volatility</h3>
Historically, post-halving periods have been characterized by increased volatility in the crypto market. This volatility stems from a combination of factors, including uncertainty among miners and investors about the future supply of Bitcoin and the impact on its price. Additionally, traders often speculate on the potential price movements following the halving event, leading to heightened market activity.
The recent <a href="https://coingape.com/halving/bitcoin-halving/" rel="noopener noreferrer nofollow">Bitcoin halving</a> event, which occurred on April 20, had already set the stage for increased volatility in the crypto market. Anticipating short-term fluctuations, investors were prepared for a bumpy ride.&nbsp;
The post-halving volatility has contributed to the current market crash by adding to the overall uncertainty and instability. While some investors anticipated short-term fluctuations following the halving, the combination of regulatory actions, geopolitical tensions, and other external factors has amplified the market’s volatility, leading to the sudden downturn in prices.
The prediction by Rekt Capital, suggesting that the next bull market peak may occur 518-546 days after the halving, adds another layer of uncertainty to the market.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#BTC</a>
 If history repeats…
 Next Bull Market peak may occur 518-546 days after the Halving
 That's mid-September or mid-October 2025<a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> <a href="https://twitter.com/hashtag/BitcoinHalving?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#BitcoinHalving</a> <a href="https://t.co/2pZVFYmnJX" rel="noopener noreferrer nofollow">pic.twitter.com/2pZVFYmnJX</a>
 — Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1783160501184118987?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 24, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<h2 id="strong-conclusion-strong">Conclusion</h2>
The current crypto market crash is the result of a confluence of factors, including regulatory actions, geopolitical tensions, and post-halving volatility. While the market remains resilient in the face of adversity, the recent events serve as a reminder of the inherent risks associated with investing in cryptocurrencies. As the industry continues to evolve, it will be crucial for investors to stay informed and adapt to changing market conditions.
The post <a href="https://coingape.com/blog/4-reasons-crypto-market-is-crashing-today/" rel="noopener noreferrer nofollow">4 Reasons Crypto Market is Crashing Today?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

4 Reasons Crypto Market is Crashing Today?

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