Even though markets have not closed, it seems reasonable to assume it was the month's "Black Friday." With market losses of $137 billion over the previous 24 hours, these are some of the likely explanations.
Nearly $880 million worth of liquidations had been reported since the market opened when this report was compiled. This is one of the highest single-day liquidations in the market's history.
Bitcoin led the way, with about $175 million in liquidated contracts.
This is one of the most important aspects to bear in mind during a market collapse. Historically, Bitcoin produced a big red candle on large liquidations, causing a cascade effect on the entire market (see the Bitcoin Price Action chart).
Recently, one of the world's largest economies suggested a ban on the usage and mining of cryptos.
According to Russia's central bank, digital currencies posed a danger to economic stability, and the prohibition was motivated by concerns about people's well-being and the country's monetary policy autonomy.
As the third-largest Bitcoin miner globally, Russia's prohibition was one of the most significant hits to the cryptocurrency sector after China's ban. The bank said openly:
"The greatest answer is to prohibit bitcoin mining in Russia."
3. Wall Street's Dive
The equity market in the United States has historically had a substantial influence on the cryptocurrency industry, and it would not be unexpected that this remains today. Over the last 72 hours, the S&P 500 Index has dropped over 4%.
Furthermore, since Bitcoin and the SPX have a connection as high as 0.59, the drops would affect one another, and it is possible that they did.
At the time of writing, almost all of the top ten digital currencies were trading within 10% of their all-time highs, with Bitcoin dropping over 7.83%. It not only lost its $40.5k support but also challenged the key level of $38k.
Despite its struggles, Bitcoin remained above it, trading at $38,310 at press time. As long as Bitcoin remains within this price range, the market will remain stable.
However, Ethereum, which traded exactly at its important support level of $2727 at the time of this report, lost more than 11% during the day despite not losing its support level.
Finally, the globe's largest crypto exchange's token, Binance Coin (BNB), fell over 11.32%, although it was trading at $418, far above its important support of $399.
The growing acceptance of virtual money has heightened the urgency of developing a central bank digital currency (CBDC), particularly as a multi-agency discussion over cryptocurrency regulation expands.
CryptoSam Bunkman-Fried, a young crypto-billionaire, has revealed a partnership with Anthony Scaramucci, a former top aide to Donald Trump. Let's have a look at the business plan.
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