Why Cardano's Value is Dropping Alongside Bitcoin

Recent Performance

Cardano's value has been on a downward trend, dropping over 3% in a single afternoon. This decline is part of a larger trend, with the cryptocurrency losing nearly 40% of its value over the past month.

Bitcoin's Influence

This decline coincides with Bitcoin's price falling below $85,000. Cardano's performance is closely tied to Bitcoin's, as trading bots are programmed to sell high-risk assets when Bitcoin's price drops. This triggers automatic selling of other cryptocurrencies like Cardano.

Snowball Effect

The automatic selling creates a chain reaction. As more people sell Cardano, its value drops further. Investors often move their money into safer investments like fiat currencies or stablecoins, reducing the amount of Cardano available for trading and exacerbating the price drop.

Trading Dynamics

A significant portion of Cardano is traded against Bitcoin. When Bitcoin's value decreases, Cardano's value also drops in comparison. This dynamic is similar to a seesaw: when one side goes down, the other follows.