Cryptocurrency Market Suffers $1 Billion Liquidation, Bitcoin Hits Two-Month Low
The cryptocurrency market experienced a massive sell-off on Friday, leading to a $1 billion liquidation. As a result, Bitcoin and other top crypto tokens were trading in deep red. The sudden liquidation caused bitcoin’s price to plummet to a two-month low.
Bitcoin Under Selling Pressure
Bitcoin, the largest crypto token, faced intense selling pressure as its price dropped by as much as 8 percent, falling below the $26,500-levels. Meanwhile, Ethereum, the largest peer of Bitcoin, plunged 7 percent to barely hold the $1,675-mark. Various altcoins were also severely affected, with some tokens bleeding up to 18 percent.
Continued Sharp Fall in Crypto Market
The crypto market has been in a sharp decline for the second consecutive day. This mass sell-off led to a plunge in the crypto fear and greed index, which dropped 13 points and entered the fear zone after over 5 months, with a score of 37/100, according to Parth Chaturvedi, Investments Lead at CoinSwitch Ventures.
Factors Contributing to Sell-Off
According to Chaturvedi, the sell-off was influenced by a US judge’s approval of the SEC’s motion to appeal the recent ruling in favor of Ripple Labs regarding retail sales of XRP. Additionally, the potential devaluation of the Chinese Yuan, which is trading at its weakest level since 2007, also impacted the market.
Top Crypto Tokens Bleed
All other top crypto tokens experienced significant losses on Friday. XRP plunged as much as 17 percent, while Litecoin tumbled 14 percent. Shiba Inu and Dogecoin also posted double-digit cuts to tank up to 12 percent. Toncoin and Polygon shed 9 percent each, while Solana was down 8 percent.
Market Cap and Trading Volumes
The global cryptocurrency market cap was trading sharply lower, falling to the $1.06 trillion-mark as it dropped as much as 7 percent in the last 24 hours. However, the total trading volumes surged almost 77 percent to $65.1 billion.
Tech View by Giottus Crypto Platform
Bitcoin’s price experienced a sharp decline due to wider negative sentiments in the market following the Evergrande bankruptcy filing and reports of SpaceX selling off their BTC portfolio. The asset plunged to two-month lows near $25,200 but quickly regained some value, currently trading at $26,500.
Bitcoin’s Future Outlook
BTC’s price action experienced a bearish entry as it broke below the key 200-day EMA range. If there is any upside momentum, additional gains could potentially drive the price towards the resistance levels of $27,000 and $27,750. BTC’s RSI is currently below 21 and has been on a downward slope, indicating that the asset has entered bearish territory.
Overall, the cryptocurrency market suffered one of its worst sell-offs of the year, with Bitcoin hitting a two-month low and various altcoins bleeding heavily.
(Disclaimer: The views and recommendations given in this section are the analysts’ own and do not represent those of Business Today. Please consult your financial adviser before taking any position in the assets mentioned.)
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