The crypto market has been in freefall, with most cryptocurrencies losing over 15% in the past week. Bitcoin’s recent drop to $85,000 has shaken investor confidence, dragging the entire market lower.
Total Market Cap in USD – TradingView
Why Is the Crypto Market Crashing?
Several major factors have contributed to this sharp decline:
Federal Reserve’s Tight Monetary Policy
The Fed’s quantitative tightening (QT) policies signal that interest rates are unlikely to be cut anytime soon, making risk assets like crypto less attractive. Adding to the uncertainty, there’s no clarity on whether Donald Trump’s administration will implement the much-anticipated Strategic Bitcoin Reserve, which could provide a boost to Bitcoin’s price.
Stock Market Crash Affecting Crypto
The S&P 500 dropped nearly 2% last Friday, marking its worst day in two months. Crypto has historically correlated with stock market movements, and this downturn has further fueled selling pressure across the digital asset space.
Bybit Hack Fueling Fear
A recent security breach at Bybit, one of the major crypto exchanges, has added to investor uncertainty. With traders cautious and sitting on the sidelines, overall buying power in the market has weakened, making recovery more difficult.
Top 3 Altcoins That Defied the Market Crash
Despite the broader market downturn, a few altcoins have surged in value, proving that some projects still have strong momentum. Here are the top 3 performers:
- PI (+70%) – The biggest gainer of the past 24 hours, PI surged by 70%, reaching a price of $2.74. This impressive rally comes amid speculation of new developments within the Pi Network ecosystem.
- IP (+25%) – With a 25% gain in the past day, IP currently trades at $7.07. Investors are betting big on its potential, despite the overall bearish sentiment in the market.
- KAITO (+38%) – KAITO saw a 38% price jump, hitting $2.40. Its strong performance suggests that traders see it as a potential breakout project even in a declining market.
Source: https://cryptoticker.io/en/top-3-altcoins-rising-during-crypto-crash/