Why Cardano's Value is Dropping Alongside Bitcoin

Cardano's value has been taking a hit lately, dropping over 3% in a single afternoon. It's not just a one-day thing; the cryptocurrency has lost nearly 40% of its value over the past month. This decline is happening at the same time as Bitcoin's price is falling below $85, 000. So, what's the deal? Well, Cardano's performance is closely tied to Bitcoin's. When Bitcoin's price goes down, it triggers automatic selling of other cryptocurrencies like Cardano. This is because trading bots are programmed to sell high-risk assets when Bitcoin's price drops. This automatic selling creates a chain reaction. As more people sell Cardano, its value drops even more. It's like a snowball effect. Additionally, when investors get nervous, they often move their money out of cryptocurrencies and into safer investments like fiat currencies or stablecoins. This reduces the amount of Cardano available for trading, making the price drop even more. Another factor is that a lot of Cardano is traded against Bitcoin. So, when Bitcoin's value goes down, Cardano's value also decreases in comparison. It's a bit like a seesaw: when one side goes down, the other side follows.