Rapid Decline of Cryptocurrency Market Value

The cryptocurrency market has experienced such a decline for the first time in a long time. Bitcoin went below $ 43,000 for the first time since February 2021. The cryptocurrency market experienced a correction of around 10% in the last day. This latest correction has liquidated more than $ 2.4 billion of trading positions. $ 400 million of these cover short positions and $ 2 billion in long positions.

According to data published by Bybt.com, which is a crypto analysis platform, 304,000 cryptocurrency traders were liquidated within a day. Bitcoin’s biggest liquidation order occurred in Huobi. The overall market cap of cryptocurrencies is in a huge decline, today it has dropped below 2 trillion.

Elon Musk Affect on Cryptocurrency Market

Elon Musk has greatly influenced the cryptocurrency market with the tweets he shared in the last week. He announced a few days ago that Tesla had suspended Bitcoin payments. Elon Musk then described Bitcoin as a centralized cryptocurrency. With these, a big decline started in the cryptocurrency market. Bitcoin lost more than $ 100 billion in a few hours and suffered a massive decline.

Justin Chuh, a senior trader at Wave Financial, said the following about this volatility.

“Everyone has been watching BTC fall, crashing 35% from all-time highs, just within a month. Remember gravity and volatility? They exist. Some of the new cryptocurrency market entrants are about to have their first taste of risk management. When combining fundamentals such as positive net inflows of BTC to exchanges, mixed with the previously mentioned technicals of lower high and lower low, we can ignore what large egos and influencers say, and see that a pullback was bound to happen,” 

Market Recovery

After this decline, the overall market cap of cryptocurrencies started to recover slightly. Bitcoin recovered from its decline to over $ 45,000 after falling below $ 43,000. However, the digital currency has also recovered somewhat, adding about $ 100 billion to their market cap. Ethereum, the second most valuable cryptocurrency in the world, reached $ 3,500. Thus, it regained $ 400 billion of its market value. Binance Coin, which is in 3rd place in the cryptocurrency ranking, is traded at approximately $ 530. The market value of BNB has exceeded $ 80 billion.

SEE ALSO: Elon Musk: Dogecoin Market Is Affected Again By His Tweet!

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Caroline Tetra

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