The reason the crypto market is red in the blood today

Bitcoin’s recent decline resulted in $ 312 million worth of liquidations, which resulted in total crypto market cap collapsing and total market participant losses soaring. With Bitcoin price hovering in the $ 44,900 to $ 45,000 range, a fall below the strong support could also be the starting point of a major correction in the market.

The reason the crypto market is red in the blood

Source: TradingView

Bitcoin and crypto market slump

Another “colorful day” comes and goes, this time on Monday. The market-leading cryptocurrency is down nearly 9%, from a high of $ 48,700 on Saturday to $ 44,436 today. This unexpected drop resulted in $ 312 million being liquidated in just an hour. Data from Bybit shows that almost half of all Bitcoin positions have been liquidated, posting $ 153 million.

1632136077 510 The reason the crypto market is red in the blood

Source: Bybit

The crypto market cap is currently at $ 1.989 billion, down 7% from yesterday. Meanwhile, the total market volume has increased 12.26% in 24 hours, DeFi’s intraday trading volume accounts for 15.39% of the total crypto market volume or $ 14.71 billion.

nguyen-nhan-thi-truong-do-mau

7 Day Cryptocurrency Market Price Chart | Source: CoinMarketCap.com

Both Dogecoin (DOGE) and Ethereum (ETH) prices saw sharp drops over the weekend, which put the market under pressure. The news that Walmart would accept Litecoin (LTC) turned out to be a mere joke and contributed to the damage in the following trading days by issuing not only LTC but other coins as well.

Other major altcoins like Cardano (ADA) also posted 11.19% intraday and 10.99% declines over the past seven days, bringing the price to $ 2.11. Meanwhile, Solana (SOL), after hitting an all-time high, fell 14.41% on the day and 10.21% last week to $ 138.24.

What are the causes?

In parallel with the collapse of the crypto market, shares in Hong Kong also collapsed. In particular, Hong Kong’s Hang Seng index fell nearly 7% to a 52-week low.

According to journalist Colin Wu, the bloodbath the cryptocurrency market is facing is due to the decline in Evergrande Real Estate Group’s shares, a 10.24% decline. Before that, this index also fell 17%. According to the Fortune Global 500 2021 list, Evergrande Real Estate Group is the second largest real estate developer in China by revenue. It is also the 122nd largest corporation in the world by profit. Other property giants in Hong Kong also faced a massive sell-off of stocks, including Henderson Land Development Co.

Evergrande has nearly $ 2 trillion in debt, according to Wu. Growing concerns over the debt crisis of one of the largest real estate companies has impacted many markets: from bank stocks to high-yield dollar bonds to stocks of Xi Jinping Ping An Insurance Group.

Although the price fell, the supply of BTC on the exchanges suddenly increased dramatically. This is seen as a negative sign, as funds that appear on the stock exchange are usually recognized in the market at some point. In addition, the average long / short ratio for long positions remains at 98%. This shows that the market is getting too hot. Various indicators such as the Relative Strength Index (RSI) have indicated “overbought” levels over the long term as well.

While the market is currently showing no signs of potential upside, the on-chain data shows that the bull market is continuing and the bears are still spiraling out of control. On-chain indicators such as foreign exchange inflows are still not showing any increased selling pressure in the crypto market and the current correction is short-term.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews or send us your message If you have any questions

mango

According to AZCoin News

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The reason the crypto market is red in the blood today

Bitcoin’s recent decline resulted in $ 312 million worth of liquidations, which resulted in total crypto market cap collapsing and total market participant losses soaring. With Bitcoin price hovering in the $ 44,900 to $ 45,000 range, a fall below the strong support could also be the starting point of a major correction in the market.

The reason the crypto market is red in the blood

Source: TradingView

Bitcoin and crypto market slump

Another “colorful day” comes and goes, this time on Monday. The market-leading cryptocurrency is down nearly 9%, from a high of $ 48,700 on Saturday to $ 44,436 today. This unexpected drop resulted in $ 312 million being liquidated in just an hour. Data from Bybit shows that almost half of all Bitcoin positions have been liquidated, posting $ 153 million.

1632136077 510 The reason the crypto market is red in the blood

Source: Bybit

The crypto market cap is currently at $ 1.989 billion, down 7% from yesterday. Meanwhile, the total market volume has increased 12.26% in 24 hours, DeFi’s intraday trading volume accounts for 15.39% of the total crypto market volume or $ 14.71 billion.

nguyen-nhan-thi-truong-do-mau

7 Day Cryptocurrency Market Price Chart | Source: CoinMarketCap.com

Both Dogecoin (DOGE) and Ethereum (ETH) prices saw sharp drops over the weekend, which put the market under pressure. The news that Walmart would accept Litecoin (LTC) turned out to be a mere joke and contributed to the damage in the following trading days by issuing not only LTC but other coins as well.

Other major altcoins like Cardano (ADA) also posted 11.19% intraday and 10.99% declines over the past seven days, bringing the price to $ 2.11. Meanwhile, Solana (SOL), after hitting an all-time high, fell 14.41% on the day and 10.21% last week to $ 138.24.

What are the causes?

In parallel with the collapse of the crypto market, shares in Hong Kong also collapsed. In particular, Hong Kong’s Hang Seng index fell nearly 7% to a 52-week low.

According to journalist Colin Wu, the bloodbath the cryptocurrency market is facing is due to the decline in Evergrande Real Estate Group’s shares, a 10.24% decline. Before that, this index also fell 17%. According to the Fortune Global 500 2021 list, Evergrande Real Estate Group is the second largest real estate developer in China by revenue. It is also the 122nd largest corporation in the world by profit. Other property giants in Hong Kong also faced a massive sell-off of stocks, including Henderson Land Development Co.

Evergrande has nearly $ 2 trillion in debt, according to Wu. Growing concerns over the debt crisis of one of the largest real estate companies has impacted many markets: from bank stocks to high-yield dollar bonds to stocks of Xi Jinping Ping An Insurance Group.

Although the price fell, the supply of BTC on the exchanges suddenly increased dramatically. This is seen as a negative sign, as funds that appear on the stock exchange are usually recognized in the market at some point. In addition, the average long / short ratio for long positions remains at 98%. This shows that the market is getting too hot. Various indicators such as the Relative Strength Index (RSI) have indicated “overbought” levels over the long term as well.

While the market is currently showing no signs of potential upside, the on-chain data shows that the bull market is continuing and the bears are still spiraling out of control. On-chain indicators such as foreign exchange inflows are still not showing any increased selling pressure in the crypto market and the current correction is short-term.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews or send us your message If you have any questions

mango

According to AZCoin News

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

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