What’s going on in the crypto market, led by bitcoin, which has lost almost 13 percent in a day?
Bitcoin, the world’s largest crypto currency by market cap, experienced its biggest drop in November 2022 since the collapse of Sam Bankman-Fried’s crypto exchange FTX, until recently seen as the “white horse prince” of crypto. Used to go up to 7.2 percent. Its value has decreased in the last 24 hours. It is a well-known fact that investors, ignoring the harsh conditions of the crypto winter, are expecting a new bull market by the end of 2023. So what’s going on in the crypto market? Will the bear market last longer than expected?
SpaceX has made its mark on the crypto money market, which has been dominated by stability for several days now. Elon Musk,It has been determined that SpaceX, the space company founded by, is selling bitcoins. The company, which disposed of $373 million worth of BTC, made the fall in the cryptocurrency inevitable.
The leader of the cryptocurrency, which started its decline from $27,780, has directly stabilized at $25,140 under the influence of the FUD news. BTC, which lost 12.60 percent in a very short time, took the liquidation data with it. $1 billion worth of transactions have closed in the last 24 hours. While over 170,000 crypto investors were liquidated, the largest liquidity in a single transaction was ETH/BUSD on the Binance exchange with $55.92 million.
weakness in summer
One of the most fundamental elements by which we can characterize weakness and inactivity in bitcoin is the market cycle. Market cycles are a phenomenon observed in all financial assets, not just cryptocurrencies. Investors, who started leaving the market as the summer months approached, naturally pulled down many of the data. On the part of bitcoin, this position broke a record. 30-day data approaching lowest ever volatility B T cHas completely pissed off the crypto investor.
The summer season is often regarded as a period of decline for BTC. BTC, which usually loses a lot of value in May, has reduced the power of investors as it enters this season. As a result, a phrase has become often used in crypto:Sell In May And Go awayThis phrase is a sign of danger before we enter the summer months.
BTC, which fell from $59,400 to $28,500 in May 2021, is down exactly 51.89 percent. The same thing happened again the next year. BTC, which was at $32,250 in May 2022, plummeted to $17,400 and lost 46.06% of its value. The market cycle concept, which has provided clear data in the recent past, continues to exert its influence this season as well.
Social media phenomenon that unfolds with cryptocurrency analysis afloud, coincollic.comHe made special evaluations for this.
Afloud said that the weakness in the market is a condition that is generally experienced during the summer season. Stating that this season of inactivity has peaked, the event said that this effect is seen not only in the crypto market, but also in the gems, watches and cars sector.
Emphasizing that before entering the last quarter, the market is psychologically exhausted to the investors. afloudStating that strict policies are the reason for the situation, he said: “I think the general bearishness in the currency market will ease a bit in the last quarter. But I don’t have much hope before 2024 comes.”
“Liquidation is not very high in markets where there is a lot of volume. Therefore, it is very normal for the price to go up and down, i.e. forming a consolidation in a lower percentage range than the crypto market,” Afloud said, adding that those who own altcoins may also want to take a bit more risk/transactions. This enables small investors to use it as a fuel, i.e. as a liquidation product, especially in the futures markets. In such cutting areas users must make progress on the spot and hedge their risks to some extent. They should be used sparingly.
Stating that the level of bitcoin dominance must rise a bit further for altcoins to explode, afloud shared the current bitcoin dominance chart for reference:
TeaIf the rumor of Ether and the Chinese real estate company was true…
On the other hand, economy journalist Erkan Oz said the following in his column published on btchaber.com today:
“Of course, rumors spread with food. Of course, the main actor of the rumors is the stablecoin USDT or Tether, which should always be pegged to the dollar. Sir, according to whispers in the market, some of the corporate bonds that Tether holds in its treasury are of these Chinese real estate companies, so they may have problems etc. If this were the case, the dollar parity of USDT should have fallen below 1. However, on the contrary, the parity also went above 1 with shocking selling. Despite this, I continue to follow the cardinal rule of ‘never put your assets in a crypto, exchange or stable coin, spread the risk as much as possible’, this is different.’
“Evergrande, SpaceX and Rumors have played a significant role in sales, thank you. But there is a deep problem with this table. Defending the view that if there is a problem with liquidity, ie cash flow, in global markets, it will have a profound effect on cryptocurrencies. Oz, however, did not neglect to see the glass as half full: “The market may provide new opportunities for those who are aiming for the 2024-2025 bull season and those who want to buy slowly.
Kirio Founders Talking Exclusively to Coinkolik.com black water “The selling pressure will increase significantly as long as BTC price remains below $25,000. This could lead to a reduction of up to 19,000,” he said.
As for the other side of the coin, namely the potential for growth, Karasu told Coincollic.com: “If $40K is to be mentioned, clearly crossing the $32K band is of vital importance. BTC Price There is a horizontal movement between 25k to 32k. This movement can provide trading opportunities.”
If positive growth turns negative,
One of the main factors that determine the direction of a cryptocurrency is the news feed. Coins related to the effect of positive news can show really big growth. We have seen this situation many times recently. For example, the ETF news was significant as BTC hit a recent peak of $31,800. BTC rallied more than 25 percent in a short period of time, buoyed by back-to-back ETF applications launched by BlackRock.
The glorification process in BTC got even bigger when Ripple news was added to the ETF applications of various companies. Ripple, which has been fighting the SEC for a long time, surged 110 percent during the day as the case progressed in its favor. This growth in XRP, one of the main coins of the crypto market, and Ripple’s lead in the matter strengthened the hand of the sector. Taking strength from these developments, BTC managed to maintain its bullish price structure for a while.
However, as of today, it is not possible to find any positive news that can attack BTC at this point of time. Although there is a news flow that could generate activity in various altcoins, this pricing action may not be sustainable. The news cycle, which is one of the most important elements for BTC to recapture $30,000, has become a frequently followed theme by investors, especially with the impact of SpaceX.
Macroeconomics Squeezes Crypto
When we consider the global financial markets, the monetary tightening policy of the US Federal Reserve (Fed) was one of the items that exerted the most pressure on the crypto market. Several factors such as interest rate decisions, employment data, and unemployment rates have weakened BTC’s price structure for some time now.
To date, Kaiko has published data that refers to the inactivity of BTC. According to new data from Kaiko Research, bitcoin (B T c) and Ethereum (ETH), the 90-day volatility index fell 35 percent and 37 percent, respectively, to their lowest levels in several years. The fact that oil, with a volatility index of 41 percent, is lagging behind BTC especially surprised financial analysts. KYCO analyst Decislava Ianeva described the current market as unusual.
The Fed rate decision, one of the most relevant data for the industry, continues to challenge BTC’s technical structure. Investor anxiety, which tends to increase as the interest rate decision draws closer, has been reflected in recent sales-oriented data. Attempting to hold the $29,250 support, BTC broke this level in line with the downside on recent macroeconomic data. All financial investors, not just crypto, track macroeconomic developments with interest.