26.9 C
Bangkok

Bitcoin and Other Cryptocurrencies Suffer Crypto Meltdown

Must read

Giving further downward momentum to the latest meltdown in cryptocurrencies, the world’s biggest cryptocurrency, Bitcoin, has now fallen by more than 50% from its record high in November.

Since Bitcoin’s peak, its market value has been wiped out by more than US$600 billion, and over $1 trillion has been lost from the crypto market overall.

Although Bitcoin and the broader market have experienced much larger percentage losses, this marks the second-largest decline in dollar terms for both, according to Bespoke Investment Group.

The price of bitcoin fell as low as $34,042.78 on Saturday, a drop of 7.2%, before paring most of those losses. Ethereum dropped 12%. Both Solana and Cardano have fallen over 17%, according to Coinbase.

According to Hayden Hughes, chief executive officer of Alpha Impact in Singapore, margin positions were liquidated, causing additional selling pressure as collateral was seized and sold to pay for margin loans.

Before expecting any sort of bullishness, I would expect a bottom to form and confidence to return, which may take some time.

Bitcoin suffering from market sell-offs

Riskier assets have been hurt around the world as the US Federal Reserve moves to withdraw its stimulus and rein in inflation, damaging both cryptocurrencies and stocks. The digital-asset space has noticed a major trend: cryptos have moved in the same direction as equities and other risky assets.

Historically, cryptocurrency has been vulnerable to these kinds of selloffs due to its high volatility. However, given how large the market cap has gotten, both raw dollar terms and percentage terms are important to consider, wrote Bespoke analysts.

Coinbase lost nearly 16% at one point on Friday, its lowest level since its public debut in the spring of 2021.

According to Coinglass, a cryptocurrency futures trading and information platform, over 239,000 traders liquidated their positions over the past 24 hours, resulting in liquidations of approximately $874 million.

Noelle Acheson, head of market insights at Genesis Global Trading, says that while liquidations have spiked, the numbers are relatively muted as compared to past declines.

Kestra Investment Management’s chief investment officer, Kara Murphy, said cryptocurrencies have a life of their own but that the recent slump is rational.

“It makes sense that people are going to move away from crypto as they retrench a little bit, look for something a little bit more solid,” she said.

More News

learn spanish online

Latest News