On Tuesday, the bitcoin rate went down sharply and for a short time was below $ 43,000. The last time at comparable levels, the first cryptocurrency was traded in early August. At the time of this publication, the fall in BTC was partially bought back and the cryptocurrency is trading at $ 46,000.
The decline from the maximum was more than 12%.
Analyst Willie Wu noted that the sell-off was mainly in the crypto derivatives market. According to him, this is typical for most of these landslides. What is atypical is the lack of prerequisites for such a rapid decline in prices.
There was no obvious catalyst for reducing the cryptomarket. This Tuesday in El Salvador came into force the law recognizing bitcoin as an official means of payment. Some analysts speculated that the event could be comparable to the April listing of Coinbase on the stock market, which marked the beginning of a decline from the highs. The El Salvadorian authorities, along with the latest movement, announced that they had acquired another 150 BTC, thus having bought 550 BTC since yesterday evening.
The volume of liquidations per day exceeded $ 3.5 billion, of which over $ 2.6 billion occurred in 1 hour.
“The basis for bitcoin futures just dropped from 16% to 9%, and for perpetual contracts finally turned negative. Annualized funding rates for tokens such as AVAX dropped from + 150% three days ago to the current -400%. This is the reboot the market needed, ”writes analyst Alex Kruger.
Simultaneously with bitcoin, other large cryptocurrencies also went down. Most of them have fallen in price by 20-30% and have lost the growth of the entire last week. So, Ethereum is again trading at about $ 3,400, although yesterday it was worth almost $ 4,000. Binance Coin dropped to $ 400, and XRP is trading at about $ 1. The Solana token, which was the undisputed leader of the previous segment, rolled back from the highs by 25%.
Cryptocurrency market capitalization, which recently approached $ 2.4 trillion, was again below $ 2 trillion.