2025-02-05 13:00:00 by coingabbar

Why Crypto is Going Down and Will it Recover: Here’s What’s Happening What Happened in Crypto Today? Global crypto market cap: $3.21 trillion In the last 24 hours, the global crypto market cap declined by 0.17%. The global crypto market trading volume also reduced by 27.14% to $169.1 billion in the same period. It has become a cause for concern for investors as to what happened to Bitcoin today and even more importantly, why is crypto going down? There are many factors that have come into play in influencing the current crypto market downturn. Let's break down the biggest developments causing volatility in the digital asset space. 1. Chainlink Whales Offload Millions, Triggering Market Jitters Large investors called whales dumped some 4.13 million LINK tokens into the exchanges over just 48 hours, thus marking a weekly slide of 15%. According to crypto analyst Ali Martinez, this massive sell-off has fed into bearish sentiment, fueling concerns over what’s happening in the crypto world today. The exit of whales from their positions often reflects weakening investor confidence, which would then impact the performance of LINK and the total crypto market cap. 2. Ripple CEO Cheers U.S. Crypto Progress Ripple CEO Brad Garlinghouse took an unusual positive twist by hailing recent developments in U.S. crypto regulation, calling them a "big deal." He said that efforts at pushing for clarity in regulations have been well-appreciated and cited discussions led by U.S. Crypto Czar David Sacks.  Of course, many are skeptical about this, but the Ripple chief sees this as a major step forward, especially as Washington's financial leaders seem more engaged in shaping policies. Can this be a wake-up call for when crypto might start crashing and if it will bounce back? 3. El Salvador Expands Bitcoin Reserves While some are selling, El Salvador continues to buy! The Bitcoin-loving nation added 20 BTC to its reserves over the past week. On February 4, El Salvador made two purchases: 11 BTC for $1.1 million at $101,816 per BTC, and 1 BTC for $99,114. With these acquisitions, the country now holds 6,068 BTC, valued at over $592 million. In just the past month, El Salvador has accumulated 60 BTC, reinforcing its unwavering bullish stance on Bitcoin despite the current crypto crash. 4. U.S. Treasury Faces Lawsuit Over DOGE Data Access In a shocking move in the courtroom, major union groups, which include AFL-CIO, sued the U.S. Treasury on charges that Secretary Scott Bessent gave DOGE, or Elon Musk lawsuit, secret access to financial data of the Americans.  It is alleged that Bessent removed a crucial official to sidestep legal restrictions, breaking federal disclosure rules. Filed February 3, the lawsuit argues that DOGE has been siphoning through secret access of data, throwing serious questions regarding privacy and the overreach of government in crypto space.  You can also read the whole news about Elon Musk Lawsuit 5. Bitcoin & Altcoins Face Strong Correction Amid Liquidity Squeeze Bitcoin isn't an exception to the decline, having fallen around 1% to $97,969.78 on a 20% drop in trading volume. The selling pressure has hit the altcoins severely, with Ethereum testing the support at $2,700 while XRP fell around 2% in the past 24 hours. Crypto investor Arthur Hayes has warned of an impending liquidity squeeze, a condition he blames on factors such as the reduction in the U.S. fiscal deficit, growth in the Treasury General Account, and a decline in dollar loans. Hayes forecasts that Bitcoin could go as low as $70,000 before rocketing to $250,000, which has traders wondering whether Bitcoin is falling today in a correction or in a bear market. What’s Next for the Crypto Market? Yes, amidst whale sell-offs, legal battles, and liquidity concerns, it is no wonder that crypto is crashing today. Positive hints like regulatory progress and institutional accumulation point to maybe the market could recover in the long run. If you ever wondered why is crypto crashing and will it recover, perhaps the answer might be in the macroeconomic factor and investor sentiment. Stay tuned as we keep track of the latest developments within the ever-changing crypto world!