The cryptocurrency market experienced a sharp correction earlier today, where the top 10 cryptocurrencies lost 7-10% of their market cap within minutes. This correction resulted in nearly $300 billion being wiped from the crypto market as the market’s total value dropped from $3 trillion to $2.65 trillion. The drop is the second crash in two weeks, despite many market experts predicting November to be a bullish month.
It erased most of its gains in November as the price of the leading cryptocurrency Bitcoin (BTC) fell close to $60,000. The top cryptocurrency was trading above $66,000 in the morning before hitting $60,583. As seen in the monthly candle, the market sell-off changed the candle from green to red.
Apart from BTC, major altcoins including Ethereum also pulled back, posting a sharper drop in prices as ETH slumped to $4,271 daily. However, there is still a green candle on ETH’s monthly chart, thanks to its massive rise this month.
Aside from stablecoins, much of the volatile crypto market has turned red and erased the massive gains from November. A leveraged position worth approximately $500 million was also liquidated.
Did Passing the $1 Trillion Infrastructure Bill Cause the Market to Drop?
The traditional financial market suffers from high inflation, but governments continue to print more money to limit the damage caused by printing money. Many believe that the sudden drop in the crypto market was due to the approval of the controversial infrastructure bill that went into law earlier today.
The crypto taxation part, in particular, has split the Senate in two. A few senators opposed the bill, while those unfamiliar with a decentralized market demanded a complete system of surveillance and impossible tax reporting. But in the end, Biden signed the bill.
Jerry Brito from CoinCenter previously stated that there is still hope in this regard. He told the crypto community that the crypto provisions will not come into effect until January 2024, which gives them some time to roll back this law before it affects anyone.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.