BTC Plunges To $20,000, $303M Derivatives Liquidated Overnight

Key Points:

• BTC plunged 8% to $20,000 after negative news from the market.
• $303M derivative orders were liquidated in the last 24 hours with 90% long.
• The top large-cap altcoins are all seeing corrections between 5 and 10% right now, with red filling the charts.

Amid much negative news for the cryptocurrency market, BTC continuously plummeted to $20,000, the lowest level in the past seven weeks. This also caused altcoins to be all correct in the 5-10% range.

The global crypto market cap is $935.39 billion, down 6.4% from yesterday to $63.41 billion. The total volume in DeFi is currently $4.93 billion, 7.77% of the total 24-hour volume of the crypto market. The volume of all stablecoins is currently $58.24 billion, representing 91.85% of the total 24-hour volume of the crypto market. Bitcoin dominance is currently 41.45%, down 0.67% on the day.

As noted, up to $303 million was liquidated in the past 24 hours, of which long orders accounted for 90%.

Every piece of information the Fed gives out has a strong influence on the market. Therefore, the leading cause of the drop is the Fed’s interest rate hike policy this month. When the expected 2% inflation rate of the US is still quite out of reach, the Fed chairman has announced that the Fed may continue to raise interest rates, which is predicted to add 0.5% to control the rate of inflation and slow down inflation.

Another adverse effect of US policy is that the Biden administration has proposed to increase the tax on electricity used to mine cryptocurrency to 30%.

They have continued that Silvergate Bank, the partner of the USD transaction processing of many major crypto companies in the US, announced to stop working. Investors are worried that the Silvergate incident could trigger a new crisis in the crypto market.

Besides, the supposedly positive news about Mt. Gox continues to delay the payment date of BTC to creditors, which is not enough to support the price.

On March, 8, Data from the blockchain shows unexpected transfers of 9,861 BTC to the exchange from the US authorities, fueling rumors of an imminent sale of BTC.

At the time of writing, the bitcoin price recorded an 8% drop within 24 hours, collapsing to $20,070. This is BTC’s lowest price mark in the past seven weeks and the first time since mid-January that the world’s largest cryptocurrency has fallen below the critical psychological $20,000 threshold.

This means that Ethereum and other altcoins are also affected to a certain extent when the market is in the red with a correction down from 5-10%.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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