The total value of the cryptocurrency market has dropped from $ 1.66 trillion to $ 1.33 trillion in one day. During the hours when 300 billion dollars were removed from the market, the positions of almost 630 thousand derivative investors were liquidated. Many cryptocurrencies, including Bitcoin, fell more than 20%.
Bitcoin price dropped to $ 45,000 during the day, according to Coinbase data. While Ethereum (ETH) was bought and sold for $ 1,820 until a day ago; dropped to $ 1,356 at noon today.
Why cryptocurrency prices are falling
- Statements from state officials: US Treasury Secretary Janet Yellen said at the event she attended yesterday that Bitcoin is “speculative”; stated that it could pose a risk to investors. South Korea’s Central Bank Governor Lee Ju-yeol stated at the parliamentary session he attended on Tuesday that “Cryptocurrencies have no intrinsic value”.
Treasury bonds are rising: The yield of 10-year treasury bonds is rising in the USA. It is thought that investors are starting to abandon risky instruments such as Bitcoin and turn to bonds that are considered more secure.
- There is heavy selling pressure in the market: For two days in the crypto money market, there has been intense selling pressure. According to Santiment data, the amount of Bitcoin sent to exchanges on an hourly basis on Sunday was more than ever for 16 weeks. Again, in the two-day period, the number of wallets with at least 1,000 BTC started to decrease. One might think that Bitcoin whales have started selling on exchanges.
- Miners started selling: Seeing that Bitcoin broke a record on Sunday, miners started selling profits, according to analyst Lex Moskovski. “The sooner the miners empty their inventory, the better,” Moskovski said. he interpreted it in a bullish way.
629 thousand investors were liquidated
- $ 300 billion was deleted: While the price of Bitcoin fell by $ 10,000 in one day, a total of $ 300 billion was deleted from the crypto money market. The dynamism experienced in the market caused an intense traffic on the stock market side. Binance announced that it stopped withdrawals with Ethereum and Ethereum-based tokens between 12:19 and 13:42 hours.
- It directly affected margin transactions: According to Bybt data, 629,170 derivative investors’ positions were liquidated in the last 24 hours. Their total value was about $ 6 billion. While 87% of those affected were long positions; $ 2.5 billion of the liquidations came from Binance. Bybt team said, “The craziest day ever seen in the futures bitcoin market.” defined as.
- Too many positions were taken: Managers of some cryptocurrency companies made statements last week about individual investors trading margins. “The market is currently very over-leveraged,” said FTX CEO. said. Frank Chaparro said this could pose a “systematic risk” to the market.
- $ 12 billion in a week: The total value of long positions that have been liquidated since the beginning of the year reached $ 32.4 billion. According to The Block data, this number was around $ 20.6 billion just a week ago.