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A large spill began on Monday in the bitcoin market, with the crypto device’s exchange rate dropping 17.1 percent, then today the drop continued to climb to $ 44,892.6, corresponding to a 21.8 percent drop in two days. Along with today’s drop, bitcoin lost nearly $ 175 billion of its market capitalization, compared to the first time it crossed the crypto device’s total $ 1 billion market value last Friday.
What caused bitcoin to crash has been written in more detail here and here. Some of the most important reasons are:
- On the one hand, the correction has been ripe for some time, as bitcoin has consistently outperformed for the past two weeks, the RSI has been essentially above 70 on the daily chart for weeks, and although the indicator has fallen About 56 points from the current daily decline chart, over time, there is still an oversupply.
- Janet Yellen, the Secretary of the Treasury of the United States, made negative statements about bitcoin, the former Fed chairman wrote that bitcoin is not a widely used transaction mechanism and that cryptocurrency is an extremely inefficient way of executing transactions because energy used to execute transactions is a staggering amount.
- In recent months, the proportion of highly leveraged open positions in the cryptocurrency market has increased dramatically, with these positions being liquidated one after another as exchange rates fall, and this effect has also accelerated the decline.
Bitcoin also dragged the entire crypto device market with it, with the price of ether, for example, dropping to $ 1,355 from its previous peak, which was less than 33.7 percent. The exchange rate has retreated from its intraday lows, currently falling 13 percent.
The binance coin, the third-largest market cap, fell 46.6 percent from last Friday’s peak, but the exchange managed to offset some of today’s drop, currently down 13 percent.
Cover image: Dan Kitwood / Getty Images
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