Cryptocurrency market crash: whoever wanted to buy bitcoin bought it a long time ago

Bitcoin fell sharply on Sunday morning below $ 51,000, losing about $ 8,000 in 20 minutes (13%). The decline began at the beginning of the trading day, when the first cryptocurrency fell below $ 60,000.

Bitcoin lost more than 10% in the moment. Altcoins declined even more: XRP fell by more than 20%, Litecoin losses approached 20%. However, by the end of the day, cryptocurrencies managed to win back some of the losses.

The result of these movements was the liquidation of $ 9.81 billion in positions of traders per day, which became the largest value in the history of the crypto market. Bitcoin accounts for about half of the total, writes ttrcoin.

The number of liquidated traders is estimated by the ByBt service at more than a million. The scale of the movement was largely influenced by the cascading liquidation of long positions, which is also evidenced by a sharp change in funding rates for futures to negative values.

The hashrate of leading Bitcoin mining pools fell sharply on Friday amid electricity supply problems following explosions and floods in coal mines in several provinces in China.

Popular trader Ton Weiss suggested that it was this news that caused panic in the market. He himself called this moment a good time to buy an asset, writes forklog.

Analyst Willie Wu notes that the price and hashrate of bitcoin have always been correlated, so the fall in the rate is associated with power outages in China.

Larry Cermak, head of research at The Block, disagrees with such conclusions, who believes that the reason for the fall was natural exhaustion of the market and disappointment with the price of Coinbase’s listing.

Meanwhile, rumors circulate online that the US Treasury Department is preparing to indict several financial institutions for money laundering through cryptocurrencies. The source of information is called lawyers familiar with the plans of the working group of the US Treasury Secretary Janet Yellen.

Cryptocurrency lawyer Jake Cherwinski considers this information to be unreliable.

“The sharp rise in Dogecoin and other altcoins in recent days is an alarming sign for the market as a whole, as it indicates that at this stage, after the successful direct listing of Coinbase, everyone who wanted to buy BTC has already bought it,” the FxPro analyst team warned on Friday.

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