Why did a global equity market slump lead to a drop in Bitcoin’s market cap?
Why is this the correct answer?
This is correct because a slump in the global equity market often forces investors to cover losses by selling off other assets, including Bitcoin. Beginners should note that in downturns, investors liquidate holdings broadly, leading to a drop in Bitcoin’s market capitalization as funds flow back into cash or safer assets.
Related Terms
AI-Generated Content Disclaimer
Important Notice: This content has been generated with the assistance of artificial intelligence. While we strive for accuracy, there may be errors or inaccuracies in the information provided. Please exercise caution and verify any information before making decisions based on it. This information does not constitute investment advice, financial advice, trading advice, or any other sort of advice. You should not treat any of the content as such. CryptoMeteo does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own due diligence and consult with a financial advisor before making any investment decisions.