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A warning about the ‘Domino effect‘ as the cryptocurrency sector loses $200 billion
Hundreds of billions of dollars have been knocked off the value of cryptocurrencies in a market-wide catastrophe that experts are saying will have a "domino effect."
Hundreds of billions of dollars have been wiped off the value of cryptocurrencies in a market-wide crash that has pushed bitcoin's worth below $60,000.
Other big cryptocurrencies, including ethereum, Binance's BNB, solana, cardano, and Ripple's XRP, have all suffered losses of up to 10%.
The whole cryptocurrency market cap decreased by more than $200 billion overnight, to about $2.6 trillion, after briefly approaching $3 trillion during last week's record-breaking run – with bitcoin reaching a new all-time high of $69,000.
Although the reason for the precipitous decline is unknown, several factors appear to be forcing investors to pause for thought.
These include a further crackdown on bitcoin mining in China, the rejection of a spot bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC), and long-term investors liquidating their holdings.
However, cryptocurrency is notoriously volatile, and analysts believe it is too early to know whether the recent dip signals the beginnings of a market reversal or only a correction en route to new all-time highs.
Bloomberg quotes an analyst as warning that fresh lows could emerge as a "domino effect" takes hold.
"After many days of advances that saw Bitcoin hover near its all-time high while several other cryptocurrencies set new records, we are seeing a huge pullback," said Walid Koudmani, an analyst at XTB Market.
"The market's extraordinary volatility might trigger a domino effect if additional negative news emerges, pushing prices to new lows."
Other analysts believe the market is on track to set new all-time highs in the coming weeks, referring to the recent decline as a "correction."
"Bitcoin's sell-off has sent it back to levels last seen ten days ago, which is hardly a crash but more of a correction of the multi-month surge," Nicholas Cawley, an analyst at foreign currency firm DailyFX, told The Independent.
"The one point of concern is that bitcoin has broken out of its multi-week ascending channel, changing the technical view from positive to neutral.
"An interesting level of support is around $59,500 — if this holds, bitcoin may well regain its recent losses and attempt to print a new all-time high in the coming weeks."
Today, Australian shares are expected to begin higher, lifted by gains in New York as retail sales figures indicated the possibility of a robust holiday shopping season despite rising prices.
Near 5 a.m. AEDT, the ASX futures were up 38 points, or 0.5%, at 7447.
Overnight on international markets, European equities ended mainly higher, while US indexes rose and the currency strengthened on the back of stronger-than-expected retail sales and hawkish comments from the US Federal Reserve.
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By Crypto PiratesHundreds of billions of dollars have been knocked off the value of cryptocurrencies in a market-wide catastrophe that experts are saying will have a "domino effect."
Hundreds of billions of dollars have been wiped off the value of cryptocurrencies in a market-wide crash that has pushed bitcoin's worth below $60,000.
Other big cryptocurrencies, including ethereum, Binance's BNB, solana, cardano, and Ripple's XRP, have all suffered losses of up to 10%.
The whole cryptocurrency market cap decreased by more than $200 billion overnight, to about $2.6 trillion, after briefly approaching $3 trillion during last week's record-breaking run – with bitcoin reaching a new all-time high of $69,000.
Although the reason for the precipitous decline is unknown, several factors appear to be forcing investors to pause for thought.
These include a further crackdown on bitcoin mining in China, the rejection of a spot bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC), and long-term investors liquidating their holdings.
However, cryptocurrency is notoriously volatile, and analysts believe it is too early to know whether the recent dip signals the beginnings of a market reversal or only a correction en route to new all-time highs.
Bloomberg quotes an analyst as warning that fresh lows could emerge as a "domino effect" takes hold.
"After many days of advances that saw Bitcoin hover near its all-time high while several other cryptocurrencies set new records, we are seeing a huge pullback," said Walid Koudmani, an analyst at XTB Market.
"The market's extraordinary volatility might trigger a domino effect if additional negative news emerges, pushing prices to new lows."
Other analysts believe the market is on track to set new all-time highs in the coming weeks, referring to the recent decline as a "correction."
"Bitcoin's sell-off has sent it back to levels last seen ten days ago, which is hardly a crash but more of a correction of the multi-month surge," Nicholas Cawley, an analyst at foreign currency firm DailyFX, told The Independent.
"The one point of concern is that bitcoin has broken out of its multi-week ascending channel, changing the technical view from positive to neutral.
"An interesting level of support is around $59,500 — if this holds, bitcoin may well regain its recent losses and attempt to print a new all-time high in the coming weeks."
Today, Australian shares are expected to begin higher, lifted by gains in New York as retail sales figures indicated the possibility of a robust holiday shopping season despite rising prices.
Near 5 a.m. AEDT, the ASX futures were up 38 points, or 0.5%, at 7447.
Overnight on international markets, European equities ended mainly higher, while US indexes rose and the currency strengthened on the back of stronger-than-expected retail sales and hawkish comments from the US Federal Reserve.
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