What is Happening at the Cryptocurrency Market?

The upcoming news concerning the crash in the cryptocurrency market occupies financial circles and debates. For some analysts, it is not anything but speculations. For others, it is a devastating step against the strike of digital currency. In such dust of events, it may come beneficial to depict the recent events before diving into the predictions on the future of the crypto-market. 

The market crash in the digital currency

Bitcoin, the largest cryptocurrency in the market, hit its lowest level since February 2021. Bitcoin ended up with a low of $38,700. Consequently, the cryptocurrency market has reached below $1.8 trillion On Wednesday. BTC trades are estimated at $39,000, with a market share referring to $730 billion. 

Coinmarketcap, the most referenced price tracking website for crypto assets globally, declared that approximately 15 % of the entire crypto market melted away in the last 24 hours. In fact, despite being the second-largest cryptocurrency, Ethereum declined to $3,000, and as of today, it hit a low of $2,867. The recent share of ETH is around $340 billion.

Market Crash

The issue of liquidation in the long crypto positions

The above-mentioned recent crash in the cryptocurrency market led to stupendous liquidations. Bybt.com, a crypto analytics firm, published the most recent liquidation data and demonstrated that long crypto positions with a value of $1.5 billion have become liquidated in the last 24 hours. The enormous degrees of liquidation are observed mainly for Bitcoin. The predicted value of the long positions in Bitcoin is around $800 million. Following, Ethereum got in the line as second most liquidated long positions with a worth of more than $350 million

Bybt.com stressed that the liquidation is beyond the long positions. More than 260,000 cryptocurrency traders were liquidated. Indeed, the widest liquidation of Ethereum on Bybit was alone at the worth of higher than $12 million.

What is the role of Elon Musk?

The given domino effect goes back to Elon Musk’s critique over Bitcoin. Musk stated that BTC is a highly centralized currency. Subsequently, Tesla suspended Bitcoin payments for the company. As it is known, Tesla was the first large company to accept bitcoin payments. Another notable comment of Musk was related to large mining companies. He claims in his recent tweet that such large mining companies control BTC. Unsurprisingly, the cryptocurrency market did not react well to the astonishing claims of Musk. Therefore, the total value of cryptocurrency assets suffered a loss of $500 billion within the past week. During these last seven days, Bitcoin and Ethereum, the two most significant leading digital currencies, experienced a drop off by more or less 30 %. 

Other digital currencies

Other assets of cryptocurrencies such as Binance Coin (BNB), Cardano (ADA), and Dogecoin (DOGE) have gravely affected, as well. The impact of Musk’s comments on these assets became salient today. The downward movement did not change the performance of BNB and DOGE. Their performance is still at the worst among the top 5 digital currencies. Nonetheless, both currencies went through a down in the last 24 hours. For BNB, the approximated fall is at 20 %, whereas, for DOGE, the loss is 18 % of its cap. 

In general, the entire market of digital currencies has tumbled down from $2.3 trillion by the 15th of May. Since then, the prices are percolating, leaving us with complexity. 

SEE ALSO: Bitcoin Address Moves 9,055 BTC During Cryptocurrency Market Crash

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