Crypto Chaos: $1 Billion Wiped Out in 24 Hours
The crypto world is buzzing with worry. In just one day, over $1 billion was lost due to something called ‘liquidations’. This happened because of some news about new rules, or ‘tariffs’, on things like cars and food from Canada and Mexico.
What are Tariffs?
Tariffs are like taxes on things that countries buy from each other. When one country puts tariffs on things from another country, it can make people worried about the economy. This time, it’s because of some new rules from the president of the United States.
Why is the Crypto Market So Upset?
Cryptocurrencies like Bitcoin and Ethereum can be very unpredictable. When people get worried about the economy, they might want to sell their cryptocurrencies to avoid losing more money. This can cause the price of cryptocurrencies to drop quickly, like it did this time.
Here are some numbers to show what happened:
- Bitcoin lost over $300 million in value.
- Ethereum dropped by 11% to $2,500.
- Solana and Cardano also lost a lot of value, up to 21.3% and 27.4% respectively.
- The total value of all cryptocurrencies together, called the ‘market cap’, went down by about 8% to $2.77 trillion.
- This means that over $460 billion was lost in just one day!
What’s Next for the Crypto Market?
Even though the crypto market is going through a tough time right now, some people still believe in it. They think that the technology and how people use cryptocurrencies will keep getting better. But, it’s hard to know if the market will get better or stay down.
One thing is for sure: the crypto market is always changing, and it can be a wild ride!