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The price of Bitcoin plummeted early on Saturday, falling nearly $10,000 to a temporary low of $42,000 in about an hour, and then rebounding to $45,000.
Bitcoin has fallen by approximately $15,000 in the past 24 hours. Ether is the second-largest cryptocurrency by market capitalization, falling by approximately US$1,100 during the same period.
According to CoinDesk data, the leading cryptocurrency reflects a broader decline in the crypto market price index, Some cryptocurrencies have fallen by more than 20% in the past 24 hours. Most of these assets appeared to begin to fall sharply around 04:00 UTC on Saturday.
According to CoinGecko, the overall market value is currently hovering around US$2 trillion.
The spot market sell-off seems to have pushed cryptocurrencies lower. The decline triggered a bullish squeeze in the derivatives market, which in turn led to a deeper decline.
Laurent Kssis, a crypto exchange traded fund expert and director of CEC Capital, said: “So far, I have seen more than 4,000 BTC sold, which caused the market to suddenly fall.” “In fact, it was sold in less than a minute when it fell. 1,500 bitcoins.”
Data tracked by Coinglass shows that the price drop triggered a Bitcoin futures position worth nearly $600 million in less than an hour. Earlier this week, the market was over-leveraged, and Bitcoin-denominated open interest (OI) rose.
“The Bitcoin-denominated OI has now remained above 365,000 BTC for more than a month. It is not common to see such a high OI lasting for such a long time. This may indicate that the market is currently over-saturated with leverage,” Arcane Research released on Tuesday. The weekly report said.
Tether (USDT) is the world’s largest stablecoin by market capitalization. The Coinbase exchange listed on NASDAQ briefly surged to $1.025, getting rid of the usual 1:1 peg.
During periods of sharp price declines, traders usually regard Tether as a safe haven because its value is pegged to the U.S. dollar, which is a traditional market safe-haven asset.
The market fell to its lowest point since the end of September due to uncertainty caused by the Omicron variant COVID-19 and the Federal Reserve’s growing unease about high inflation.On Tuesday, Fed Chairman Jerome Powell withdrew the term “temporary” from the inflation discussion and said the central bank might consider
Even so, some people still use this fall as an opportunity to “buy on dips.” The President of El Salvador, Nayib Bukele, announced that the country holds bitcoins on its balance sheet and purchased bitcoins during the previous decline. He announced that he would buy them again at a price of approximately $48,700 each. 150 BTC.
Salvador just bought the dipping sauce! ????????
150 coins, the average USD price is about 48,670 USD ????#Bitcoin????
— Nayib Bukele ???????? (@nayibbukele) December 4, 2021
Update (18:15 on December 4, 2021 UTC time): Correct grammatical problems.
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