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BTC, ETH, XRP, BNB, DOGE: Why Is Crypto Tanking Today?

BTC, ETH, XRP, BNB, DOGE: Why Is Crypto Tanking Today?
Written by publisher team

Today appears to be turning into a bloodbath for many high-profile cryptocurrencies. In fact, investors who monitor cryptocurrency treasuries today may be wondering what the root cause of this price movement is.

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After all, many today expected it to be relatively powerful in the crypto world. Today marks the first day Bitcoin (CCC:BTC-USD) will be accepted as legal tender by a sovereign country. El Salvador has become the first country to fully integrate a cryptocurrency into the country’s official monetary system.

However, Bitcoin, as well as its peers with huge venture capitalists Ethereum (CCC:ETH-USD), ripple (CCC:XRP-USD), Binance coin (CCC:BNB-USD) And Dogecoin (CCC:DOGE-USD), they are all dropping significantly today. Over the past 24 hours, each of these coins is down between 10% and 17% at the time of writing.

This price action could definitely be a scratch for many crypto enthusiasts. After all, these high-profile cryptocurrencies have been up and running in recent weeks. Accordingly, questions are circulating today as to whether today is just a healthy correction from the recent highs, or the start of another major decline.

Let’s dive into two of the main drivers of this price action today.

Why are cryptocurrencies stored today?

The first major driver of today’s drop appears to be the El Salvadorian move towards the adoption of bitcoin as a legal tender. What was supposed to be a catalyst appears to be driving the uncertainty in today’s crypto markets.

why?

Well, the government’s pre-loaded $30 per Salvadorian Bitcoin wallet, Chivo, didn’t get off to a great start. The government had to separate this portfolio earlier today due to technical issues. Various tests are being conducted, and the government is looking to start this program as soon as possible.

However, this is definitely not a good first impression. Users in El Salvador who may already be skeptical about Bitcoin may be less likely to use this wallet. Accordingly, investors who outperform Bitcoin’s ability to truly replace fiat money will have to wait and see how that unfolds.

In addition, many market experts call today’s price action in the crypto world a Flash crash. Accordingly, concerns are being circulated about how long this crash will last. Most cryptocurrency enthusiasts expect this quick crash scenario to be corrected in no time. However, time will eventually tell where the crypto ratings go from here.

At the date of publication, Chris MacDonald did not (directly or indirectly) hold any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com Posting Guidelines.

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