Tuesday, September 21, 2021
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Bitcoin and Co. suffer massive price losses




Yesterday green, today red: A chain reaction on the futures market has led to heavy price losses on the crypto market. The President of El Salvador takes it easy. The market update.

The Bitcoin debut would have been expected differently in El Salvador. The “B-Day”, on which the cryptocurrency was officially crowned the national currency, has quickly developed into “D-Day”. In fast motion, the overall market collapsed under the pressure of a massive sales avalanche yesterday evening. Bitcoin fell $ 5,000 in just 30 minutes. On some exchanges, the price even crashed briefly to $ 43,000 before recovering at $ 46,000. The slump followed after a longer upward period, in the course of which BTC was able to catch up to over USD 52,000 yesterday. The key crypto currency has again clearly distanced itself from this. At press time, the largest cryptocurrency is trading at $ 45,495 – down 13 percent for 24 hours.

The bloodbath has left even bigger notches in the altcoin market. In a daily comparison, all top 10 assets posted price discounts in the double-digit percentage range. Polkadot (DOT) got it especially bad with a loss of 25 percent in value. Ethereum (ETH), Cardano (ADA) and Solana (SOL) are each 15 percent in the red. Binance Coin (BNB) and Dogecoin (DOGE) are turning down around 19 percent, while XRP is taking a setback of 21 percent.

Total market capitalization lost around $ 400 billion in yesterday’s trading session. Around noon, the way to the May record high seemed clear. Until then, there is again a gap of 500 billion US dollars. At the time of going to press, however, the total value of all crypto assets could have surpassed the symbolic 2 trillion mark again.

Bitcoin rate in the spin cycle

One day after the dive, the Twitter world tries to put the crash in the right order. One thing is certain: the crash was triggered by a wave of liquidations on the derivatives markets. As Glassnode tweeted, “over $ 4 billion in Bitcoin Open Interest was mined during this sell-off.” The on-chain researchers speak of the “most significant leverage flush since the sell-off in mid-May”.




CryptoQuant analyst “CryptoVizArt” also comes to the conclusion. In an analysis of the events he also comes to the conclusion “that this price fluctuation was mainly driven by the futures market”. Accordingly, the whales have leveraged themselves on the futures markets: “In view of the massive decline in open interest, it can be assumed that a considerable number of positions with a high leverage effect have been flushed out of the market”.

The news portal CryptoDiffer posted the amount of liquidations on all exchanges in one yesterday Tweet at a total of $ 3.54 billion. Well-known analyst Willy Woo according to BTC liquidations totaled $ 1.1 billion.

Investor sentiment is tipping

The chain reaction also dragged the Crypto Fear and Greed Index down. Yesterday the hand was still on 79 counters. In the meantime, the mood barometer has slipped to 47 points.

Nevertheless, there can be no talk of doom and gloom. President Nayib Bukele took the drop in price calmly and as an opportunity to replenish stocks by another 150 BTC. All in all the country now holds 550 Bitcoin.

The “slip” shows once again the unpredictability of the crypto market and that domino effects on futures markets can quickly develop into a downward spiral. Yesterday’s sell-off did not change anything in terms of strong network data. The “buying the dip” mentality could thus quickly push the market up again.



Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.
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