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Here are the reasons why the crypto market is crashing today

The crypto market ‘s decline on June 10 appeared a day after Robinhood decided to delist SOL, ADA, and MATIC from its online trading platform beginning June 27, citing “a cloud of uncertainty around these assets” amid the SEC crackdown.

In addition, Crypto.com suspended its institutional investment services in the U.S.

The cryptocurrency market fell 7% below $1 trillion on June 10, continuing its decline in the week that saw the industry’s biggest exchanges, Binance and Coinbase, facing regulatory actions by the U.S. Securities and Exchange Commission (SEC).

Bitcoin BTCtickers down$25,833, the leading cryptocurrency by market capitalization, dropped 3.75% to around $25,500.

Second-largest cryptocurrency ETH down $1,754 fell 6.9% to around $1,700, its worst level in two months.

Nonetheless, the tokens deemed “unregistered securities” in the SEC lawsuits were among the worst performers on June 10.

Namely, Cardano down $0.269, Solana down $16, and Polygon down $0.6239, which fell 22%, 25%, and 30% on the day, respectively.

Why is The crypto market down today

The crypto market is down today, and there are several reasons why this is happening.

Here are some of the reasons :

  • Delisting of “unregistered securities” tokens: Robinhood announced the delisting of “unregistered securities” tokens from its platform, which caused the crypto market to go down.
  • Lawsuit against Binance and its CEO Changpeng “CZ” Zhao: The United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng “CZ” Zhao, which spooked investors and brought prices down across the market.
  • Less trading and lower liquidity: When there is less trading and lower liquidity in a market, the result is much greater volatility.
  • That’s because smaller trades have a larger impact on the price of an asset.
  • Rejection by the resistance line of a channel: The Crypto Market Cap (TOTALCAP) was rejected by the resistance line of a channel and began a sharp downward movement.
  • Record-high inflation, fear, rising interest rates, and a loss of confidence in crypto investments: These factors contributed to the crypto crash. Analysts say most of the factors are “macro,” which means they relate to the economy as a whole rather than any flaws in the crypto market.
  • Systemic issues within crypto: Some crypto crashes are because of systemic issues within crypto, such as the collapse of FTX.
  • Other times, macroeconomic factors such as higher interest rates, rising inflation, and other macroeconomic factors that can affect how confident people feel investing their money in risky alternative assets can cause a crypto crash.

It’s important to note that when asset prices decline as rapidly as they have in the crypto market recently,

it can make that coin you’ve had your eye on look like a super deal.

However, old Wall Street professionals have a rule of thumb that aptly describes moments like this: “Never try to catch a falling knife.” Using your imagination, you should understand that catching a falling knife—aka “buying the dip”—nearly always ends painfully.

what are some strategies for minimizing losses during a crypto market crash

Here are some strategies for minimizing losses during a crypto market crash:

  • Don’t fall prey to FOMO and FUD: Staying on top of the latest news and trends in the cryptocurrency space is crucial, but too much information can definitely be a bad thing.
  • This is especially true in market downturns, where it’s all too easy to be swayed by fear and uncertainty.
  • Avoid making emotional decisions based on FOMO (fear of missing out) or FUD (fear, uncertainty, and doubt).
  • Have a plan: It’s important to have a plan in place before a market downturn occurs.
  • This plan should include things like your investment goals, risk tolerance, and exit strategy.
  • Stick to your plan and avoid making impulsive decisions based on short-term market movements.
  • Don’t panic: One of the easiest ways to lose money in a bear market is to lose your nerve and join the firesale mob.
  • As with conventional asset trading, crypto holding requires a measure of strategy.
  • It is always helpful to look at your holdings from the wider angle of an extended time period in order to determine exactly how badly they are performing and whether you should even sell in the first place.
  • At best, panic will rob you of an opportunity to keep hold of a performing asset.
  • Analyze the fundamental situation: Analyze how the fundamental situation could play out for crypto, given new developments.
  • Will governments get tougher on it? Will they encourage it? Will it become more mainstream? Will it be replaced by something else? These are all questions to consider when analyzing the fundamental situation.
  • Choose how much of your overall portfolio should be invested in crypto: Though the factors driving each crypto crash are different, it can be helpful to remember a few established investing principles, like choosing how much of your overall portfolio should be invested in crypto and remembering why you invested in the first place.

By following these strategies, you can minimize your losses during a crypto market crash and make more informed decisions about your investments.

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