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Cryptocurrencies such as Bitcoin and others Suffer from a Crypto Meltdown
The world's largest cryptocurrency, Bitcoin, has now plunged by more than 50% from its record high in November, adding further negative impetus to the latest cryptocurrency catastrophe.
Since Bitcoin's peak, its market value has been wiped out by more than US$600 billion, and the crypto sector as a whole has lost more than $1 trillion.
Despite significantly bigger percentage losses for Bitcoin and the broader market, this is the second-largest decrease in dollar terms for both, according to Bespoke Investment Group.
Bitcoin's price fell as low as $34,042.78 on Saturday, a 7.2 percent decrease, before recovering most of those losses. Ethereum has plummeted by 12%. According to Coinbase, both Solana and Cardano have dropped by more than 17%.
Margin holdings were liquidated, prompting extra selling pressure when collateral was seized and sold to pay for margin loans, according to Hayden Hughes, chief executive officer of Alpha Impact in Singapore.
Before anticipating any kind of bullishness, I'd wait for a bottom to develop and confidence to return, which might take some time.
Bitcoin is suffering as a result of market sell-offs.
Riskier assets have suffered around the world as the US Federal Reserve withdraws its stimulus and attempts to rein in inflation, harming both cryptocurrencies and equities. The digital-asset industry has detected a significant trend: cryptos have gone in the same direction as equities and other hazardous assets.
Because of its extreme volatility, cryptocurrency has historically been subject to these types of selloffs. However, given the market cap's size, both raw dollar and percentage metrics are vital to analyse, according to Bespoke analysts.
Coinbase fell over 16% at one point on Friday, its lowest level since its initial public offering in the spring of 2021.
According to Coinglass, a cryptocurrency futures trading and information platform, over 239,000 traders liquidated their positions in the last 24 hours, totalling $874 million.
According to Noelle Acheson, head of market research at Genesis Global Trading, while liquidations have increased, the numbers are relatively modest in comparison to previous drops.
Kara Murphy, chief investment officer at Kestra Investment Management, believes cryptocurrencies have a life of their own but that the latest collapse is sensible.
"It makes reasonable that people will migrate away from cryptocurrency as they retrench a little bit and look for something a little bit more substantial," she added.
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By Crypto PiratesThe world's largest cryptocurrency, Bitcoin, has now plunged by more than 50% from its record high in November, adding further negative impetus to the latest cryptocurrency catastrophe.
Since Bitcoin's peak, its market value has been wiped out by more than US$600 billion, and the crypto sector as a whole has lost more than $1 trillion.
Despite significantly bigger percentage losses for Bitcoin and the broader market, this is the second-largest decrease in dollar terms for both, according to Bespoke Investment Group.
Bitcoin's price fell as low as $34,042.78 on Saturday, a 7.2 percent decrease, before recovering most of those losses. Ethereum has plummeted by 12%. According to Coinbase, both Solana and Cardano have dropped by more than 17%.
Margin holdings were liquidated, prompting extra selling pressure when collateral was seized and sold to pay for margin loans, according to Hayden Hughes, chief executive officer of Alpha Impact in Singapore.
Before anticipating any kind of bullishness, I'd wait for a bottom to develop and confidence to return, which might take some time.
Bitcoin is suffering as a result of market sell-offs.
Riskier assets have suffered around the world as the US Federal Reserve withdraws its stimulus and attempts to rein in inflation, harming both cryptocurrencies and equities. The digital-asset industry has detected a significant trend: cryptos have gone in the same direction as equities and other hazardous assets.
Because of its extreme volatility, cryptocurrency has historically been subject to these types of selloffs. However, given the market cap's size, both raw dollar and percentage metrics are vital to analyse, according to Bespoke analysts.
Coinbase fell over 16% at one point on Friday, its lowest level since its initial public offering in the spring of 2021.
According to Coinglass, a cryptocurrency futures trading and information platform, over 239,000 traders liquidated their positions in the last 24 hours, totalling $874 million.
According to Noelle Acheson, head of market research at Genesis Global Trading, while liquidations have increased, the numbers are relatively modest in comparison to previous drops.
Kara Murphy, chief investment officer at Kestra Investment Management, believes cryptocurrencies have a life of their own but that the latest collapse is sensible.
"It makes reasonable that people will migrate away from cryptocurrency as they retrench a little bit and look for something a little bit more substantial," she added.
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