Bitcoin price, ethereum, BNB: $ 200 billion wiped out the crypto market

Hundreds of billions of dollars have been wiped out by cryptocurrencies in a market crash that has prompted experts to warn of a “domino effect”.

Hundreds of billions of dollars have been wiped out by cryptocurrencies in a market-wide crash that has brought the price of bitcoin down below $ 60,000.

Other major cryptocurrencies, including ethereum, Binances BNB, solana, cardano and Ripples XRP, have also fallen back – losing up to 10 percent of their value.

The overall crypto market fell by more than $ 200 billion overnight to about $ 2.6 trillion, after briefly teasing $ 3 trillion during the record-breaking rally last week – where bitcoin reached a new record of $ 69,000.

It is not yet clear what is causing the dramatic landslide, but there are several factors that seem to be making investors think twice.

These include a new repression of bitcoin mining in China, the US Securities and Exchange Commission (SEC) rejection of a spot bitcoin exchange traded fund (ETF) and long-term investors selling out to get their money.

Crypto, however, is notoriously volatile, and analysts say it is too early to say whether the recent dip marks the start of a reversal of the sharply rising market, or whether it is just a correction on the way to new records.

An analyst who spoke with Bloomberg warned of new lows emerging that a “domino effect” could address.

“After several days of gains, with Bitcoin soaring close to the highest level as many other altcoins managed to reach new heights, we are seeing a significant decline,” said Walid Koudmani, analyst at XTB Market.

“The extreme volatility that the market is prone to could lead to a potential domino effect should more negative news emerge and bring prices to new lows.”

Other experts believe the market is likely to reach new record highs in the coming weeks – calling the latest dive a “correction”.

“Bitcoin’s divestiture has brought it back to levels last seen 10 days ago, hardly a dive, more a correction of the multi-month rally,” said Nicholas Cawley, an analyst at currency firm DailyFX. The independent.

“The one area of ​​concern is that the movement lower has seen bitcoin fall out of its multi-week rising channel, which has turned the technical outlook from positive to neutral.

“An interesting area for support is around $ 59,500 – if this holds, we may well see bitcoin recover its recent losses and look to print a new all-time high in the coming weeks.”

In the stock market today, Australian equities are expected to open higher, supported by gains in New York, as retail sales data signaled the potential for a strong Christmas shopping season despite rising inflation.

ASX futures rose 38 points or 0.5 percent to 7447 near 6 p.m. 05.00 AEDT.

Elsewhere in international markets during the night, European equities closed higher, while US indices rose and the dollar strengthened against better-than-expected details and hawkish comments from the US Federal Reserve.

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