In just one hour this morning, Bitcoin was down over $1,000. That’s nearly $2 billion in market capitalization, after a wave of liquidations. As usual, this drop led to a panic move that was reflected in the altcoin market. Altcoins that seem to suffer even more from today’s session than King Bitcoin.
Bitcoin: 100 million liquidated in an hour!
It was a wave of liquidation that created the day’s market conditions. To get a better understanding, let’s see the Bitcoin price chart together for the last 24 hours:
This morning, between 8:25 am and 8:55 am, Bitcoin lost more than $1,000. In the space of half an hour, the mother of cryptocurrencies then goes from 22,800 to 21,900 dollars. As of this writing, Bitcoin is trading against $21,747, which has accelerated this morning’s losses. That’s a drop of 6.77% in the last 24 hours. On Bitstamp, Bitcoin even touched the threshold of $21,500, the lowest level in the last 3 weeks.
For some, this liquidation was predictable. In fact, Bitcoin was already under some kind of pressure since yesterday touching its weekly low, close to $23,200. On this day, Bitcoin reached a level of greater liquidity observed since June 18. Within an hour, the volume of liquidations exceeded $100 million for Bitcoin and $200 million for the entire crypto market.
Yesterday, at the end of the day, we learned that too Wladimir Van Der Laan, the main developer of the Bitcoin network was leaving his job. Information that must be weighed on the price of Bitcoin. And inevitably the crypto market as a whole. Along with the announcement that the FED was again pushing for an interest rate hike and a new cut cocktail was well and truly agreed.
Altcoins are following suit
This sharp drop in Bitcoin had a direct impact on other altcoin projects. Among the top 10 altcoins, all are showing declines. Most show even greater losses than those of Bitcoin. If we consider the top 100 cryptos, only the Gnosis project (GNO) appears in the lock in the last 24 hours. The following table shows the price of the 10 main altcoins as well as their evolution since yesterday morning.
|Course||Evolution over 24 hours|
|Ethereum (ETH)||$1,738.73||– 5.87%|
|BNB (BNB)||$284.99||– 7.37%|
|XRP (XRP)||$0.3413||– 9.22%|
|Cardano (ADA)||$0.4713||– 12.65%|
|Solana (SOL)||$36.33||– 11.27%|
|Dogecoin (DOGE)||$0.0692||– 13.85%|
|Polka dot (DOT)||$7.49||– 11.57%|
|Shiba Inu (SHIB)||$0.00001298||– 12.89%|
|Polygon (MATIC)||$0.7801||– 11.49%|
|Avalanche (AVAX)||$22.38||– 13.31%|
This table helps highlight that with the exception of Ethereum, all major altcoins are posting higher losses than Bitcoin. For 7 of these 10 projects, the losses are higher than 10%. Within the top 100, losses of more than 10% represent the majority of projects. In the last 24 hours, the crypto market fell more than 7% in valuation for 1,050 billion marketcap.
The increase or a new bull trap to correct?
This is the question of the moment. Does this new market movement show a correction before starting to rise again, in line with what has been practiced in recent weeks or are we on the contrary heading towards a return to sharp decline. At this point, both hypotheses now seem plausible.
Be that as it may, the Fear and Saint index, which measures market sentiment, is still at 33/100, after several days at over 40. It may go down again because of this morning’s incident. And why not, back to “Great Fear”.
Also read: Bitcoin, still in the dark