Is this end of Bitcoin and Ethereum: Know what caused the downfall

Bitcoin (BTC) and Ethereum (ETH) have lost 6% and 7% of their value in the last 24 hours, respectively, wiping out previous gains.

There is “severe fear” in the markets

According to reports, the rapid and negative price action led to the liquidation of around $133 million in Bitcoin and Ethereum holdings. Longs made up the majority of these positions.

Despite relatively consistent transaction volume, the values of Bitcoin and Ethereum, the world’s two largest cryptocurrencies, have fallen.

The largest cryptocurrency, with a market value of $563.33 billion, is also down 57.06 percent from its all-time high of $68,789.63 set in November.

Bitcoin is currently trading at $29,587, down 5.85 percent on the day, according to CoinMarketCap statistics.

Ethereum is likewise having trouble maintaining its current bullish trend. The second-largest cryptocurrency has dropped 7.42 percent in the last 24 hours, trading at $1,764.

According to statistics, Ethereum is now down 64.02 percent from its all-time high of $4,891.70 reached in November 2021.

The Crypto Dread & Greed Index, which measures crypto market movements and determines if cryptocurrencies are reasonably valued, is now at a low (15 out of 100), suggesting “severe fear” in the markets.

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The exact reason for crash

Reduced DeFi activity on Ethereum and a drop in Bitcoin trading activity are two potential factors for today’s negative move.

According to statistics from DefiLlama, total value locked (TVL) across multiple protocols in Ethereum declined from $88.67 billion to $68.02 billion in the last 24 hours.

The largest DeFi protocol on Ethereum, TVL on Aave, has lost 15% in the last month.

Uniswap, MakerDAO, Curve Finance, Lido, and Uniswap all lost double digits of TVL at the same time period.

In other news, Bitcoin’s movement to fiat exchanges (where users may trade Bitcoin for cash) has increased by 5% in the last 24 hours, indicating that Bitcoin is being sold for cash.

According to statistics, the flow of Bitcoin to crypto exchanges is down 37.4 percent, indicating lower demand for BTC among investors.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing