New Delhi: The cryptocurrency market on Saturday morning witnessed selling that has not been experienced for months as 375,113 trades were liquidated. On Bifinex, DOTUSD was the largest single liquidation order worth $28 million. Besides, almost a billion dollars were wiped from traders with exposures in its futures market.
Bitcoin underwent a downfall of over 20% over the last day while Ethereum declined over 18% over the last day. Solana also collapsed 15% of its surging price tag.
The market value of the cryptocurrency has suffered a decline by nearly 20% over the last 24 hours, trading at $2 trillion.
Concerns have been raised amid the outbreak of the new coronavirus variant, Omicron, and also the harsh wordings by the US Federal Reserve. Charlie Munger, an investor, has compared the crypto market’s price action with the dot-com bubble that popped.
The “listless” nature of Bitcoin’s price over the past few weeks has resulted in a slow downtrend on high timeframes and rough movements on lower timeframes cause fear amongst the traders as the bull run was over.
However, the Bitcoin analysts suggested that once Bitcoin breaks out of its current stage, the best level of support lies between $45k, around which the price suffered during the May crash earlier this year.
Besides, labour shortages and supply chain problems occurred due to lockdowns and stimulus checks. As a result, labour and product prices rose. Now, it is expected that the Federal Reserve must raise interest rates to fight inflation.
Inflation hedges such as Bitcoin are suffering a downfall today due to the high correlation between BTC and S&P 500 stocks as Bitcoin has increasingly become a mainstream investment.
