Elon Musk and his circle of Cryptocurrency investors sold off their digital assets on Saturday as the global crypto market plunged by over 37%. As much as $2.4 billion was liquidated earlier today, which is the largest depreciation since September. World’s largest cryptocurrency, Bitcoin fell to $42,664.64 down but over 36% in the last 24 hours. Among other cryptocurrencies, Ethereum also followed Bitcoin to dive by over 35%, sinking as low as $3503.23 in a day, Dogecoin sinking as low as $0.13
While the market has streamlined since the steep fall earlier this morning, the total crypto market cap fell from $2.6T on Friday to $2.07 on Saturday. The total market value touched $3 trillion last month, for a very short time. As an observable pattern, the Bitcoin price drop is seldom accompanied by a price drop in other cryptocurrencies. There have been multiple developments in the global market, that could have contributed to the crypto crash today.
A popular question at this point is why Elon Musk cashing his crypto assets. Multiple factors might have led to do that. Starlink and SpaceX is going to administration(bankruptcy), Tesla GigaFactory in Germany have eco issue, Texas is close too. Besides, the mercurial view of governments around the world proposing to ban cryptocurrencies leaving some exceptions could have created a state of panic among investors. Another factor that has an impact on the global stock market, as well as the cryptocurrency market is the arrival of a new variant of the Coronavirus, Omicron. These are some of the factors that might provide answers to what made crypto market crash today.