The last 24 hours has seen a major <a href="https://www.cryptoknowmics.com/"><strong>Crypto news</strong></a> in the crypto market. <a href="https://bitcoin.org/en/faq">Leading coin Bitcoin lost 12.98%</a>  of its value and currently trades for  $8.505 at the time of writing, down from $9,711 at the start of yesterday's trading. In this article, you will get to know the points about Crypto Crash.

The drastic loss suffered by the crypto market caught many unaware and has generated shock waves within the crypto market. Many investors are confused about the reasons behind the sudden collapse.

Here we explain five key points to understand the acute crypto bear which has brought Bitcoin and the crypto market to its knees.

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<h4><strong>This Breaks With The Side Market</strong></h4>
Bitcoin had been showing atypical behavior in recent weeks, going through what is known as a side market. That is, a market that does not have a clear upward or downward trend, so it is stuck with brief swings up or down in its price.

These types of markets are usually the equivalent of the old adage "calm before the storm", a harbinger of major movements in the future that bring a break in the side market, either with the collapse in the price of the asset or with the beginning of a new bullish rally.

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<h4><strong>Bitcoin Hash  Rate Also Suffered</strong></h4>
One of the main indicators of Bitcoin performance is the hash rate. This statistic reflects the computational capacity of the BTC network for the realization of mathematical operations, which will allow confirmation of transactions in the blockchain.

So, the hash rate is a measure of the capabilities that miners add to the Blockchain, and therefore of the existing interest around the cryptocurrency. This figure had a constant growth over the last months, reaching record figures practically every week until today, suddenly and without knowing the reason very well, collapsed by more than 40% as seen in The following graphic:

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<img class="aligncenter wp-image-146735 size-full" src="https://www.cryptoknowmics.com/crypto/wp-content/uploads/2019/09/hash-rate-bitcoin.png" alt="Bitcoin crypto hash rate" width="768" height="315" />

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<h4><strong>Price Collapse Could Be Due To Chicago Mercantile Exchange Futures.</strong></h4>
If the fall in the hash rate turns out to be a mystery to analysts, the collapse in the price of Bitcoin has a very clear culprit: the future contracts on Bitcoins offered by the <a href="https://www.cryptoknowmics.com/crypto/bakkt-physically-settled-bitcoin-future-now-live/">Chicago Mercantile Exchange</a> (CME).

And, 50% of these contracts have an expiration date on Friday, September 27, a situation that encourages market speculators to sell more Bitcoins, radically increasing liquidity in the market. This, therefore, presses the price downward, which combined with the situation of previous stagnation, led to the rapid collapse of Bitcoin prices.

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<h4><strong>Altcoins Have Also Suffered Losses</strong></h4>
Not only has it been the Bitcoins market that has been affected due to this collapse, but in its fall the BTC has dragged all other cryptocurrencies in the market, which have fallen even more than Bitcoin.

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<img class="aligncenter wp-image-146732 size-full" src="https://www.cryptoknowmics.com/crypto/wp-content/uploads/2019/09/crypto-market.png" alt="crypto market" width="889" height="519" />

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The most dramatic case in this regard is that experienced by Ethereum, a cryptocurrency that starred in the market the previous week due to the significant growth in its price, and that today returns to the levels prior to this bullish rally.

<img class="aligncenter wp-image-146736 size-full" src="https://www.cryptoknowmics.com/crypto/wp-content/uploads/2019/09/Screenshot_51.png" alt="Ethereum crypto chart" width="993" height="473" />

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<h4><strong>Bitcoin Set For Imminent recovery</strong></h4>
Although this Crypto Crash seems more acute than the last lived by cryptocurrency in recent times due to CME contracts, the truth is that after a situation like this, market recovery usually comes in a short time, especially once the date passes of expiration of the options.

In addition, the launch of future physical contracts on Bakkt Bitcoins, brings with it the promise of greater market stability in the short term, as it will no longer be at the mercy of the terms of the CME options, having a safer and less manipulable instrument available to investors.

5 Key Points To Understand Today's Crypto Crash

I am olowoporoku adeniyi, writer, editor and crypto evangelist, with five years experience in the Blockchain industry.

5 Key Points To Understand Today's Crypto Crash

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