This is why $80 billion was wiped out of the crypto market

A significant amount of money has been wiped out of the crypto market in the last 24 hours. Billions of dollars have been removed from market capitalization as cryptocurrencies such as Bitcoin lost about 10% of its value over the same period. Following this, Cardano Network founder Charles Hoskinson shared his thoughts on what caused the market to crash.

inflation is the culprit

Cardano founder Charles Hoskinson posted on Twitter explained High inflation is the reason behind the market crash. It’s no secret that U.S. inflation has risen in the past few months, and his latest CPI data report shows inflation rising even higher, sparking panic across financial markets.

Headline inflation rose by only about 0.1% according to CPI data, while core inflation rose by 0.6%. However, while these figures are not “larger” than previous inflation growth rates, they do indicate that inflation has not slowed. With year-on-year inflation currently stuck at 8.3%, there was a massive sell-off in the market.

Hoskison shared a report from CNBC showing that it wasn’t just the cryptocurrency market that fell with the release of CPI data. The DOW dropped him 1,200 points in one day. This was his largest one-day drop recorded in the last two years.

Market cap drops to $951 billion | Source: Crypto Total Market Cap on TradingView.com

Here are Hoskinson’s remarks on inflation: The person in charge is a delusional cult. Receive an invoice. “

The cryptocurrency market has lost a total of $80 billion in the last 24 hours, driving its market capitalization back below $1 trillion. Markets are now eyeing the FOMC meeting scheduled for early next week. This decision will have a significant impact on the market as well. But before that, the Ethereum merge presents another event that could impact the market.

Bitcoin’s strong correlation with the stock market is also affecting the market. This means that if the crypto market is to recover, a recovery in the stock market will help it. is likely to remain far from over.

Featured image from Forkast, chart from TradingView.com

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