The popular cryptocurrency Bitcoin, which took off again recently and saw its new historical peak, fell hard from the peak. The crypto money, which started the day at 57 thousand 485 dollars, is currently trading at around 53 thousand 467 dollars.
The leading crypto currency Bitcoin, which has recently been on the rise again, experienced a sharp decline during the day. On the trading day, also known as ‘bloody Monday’ in the crypto money markets, the depreciation of Bitcoin was also felt in the sub-markets and many sub-coins decreased.
After yesterday’s peak of $ 58,200, Bitcoin, which opened today at $ 57,485, is trading at $ 53,467 as of the date of this writing. After the decline, Bitcoin’s total market value also fell below $ 1 trillion. The market value of the sub-coins, which was worth $ 700 billion the other day, is around $ 580 billion.
‘Market liquidity deteriorated’
Bitcoin has roughly tripled in the past three months, but its liquidity has deteriorated, according to Nikolaos Panigirtzoglou, a strategist at JPMorgan Chase & Co. “The market liquidity is now much lower for Bitcoin than gold or the S&P 500, which means that even small flows can have a big price effect,” the expert wrote in a note on Friday.
So much so that even Elon Musk, one of the biggest supporters of the crypto money markets, was a little surprised by this record rise in Bitcoin. Tesla and SpaceX’s CEO said in a tweet he posted recently that “Bitcoin and Ethereum prices seem high”.
The increasing interest of institutional investors, especially Elon Musk, in the market has caused Bitcoin to triple in the last few months.
In the longer term, experts emphasize that the record monetary expansion of central banks around the world, especially the US Federal Reserve (FED), during the pandemic has contributed to the increase in the value of cryptocurrencies, which are speculative assets.