Bloodbath on Satoshi Street, $500 Billion Eroded from Crypto Market in Hours

There’s a lot of crypto blood spilled on Satoshi Street at this point! Over just the last two hours, over $500 billion have been eroded from the overall cryptocurrency market in a snap. This has been one of the biggest market crash events in the history of crypto markets.

In the last 24-hours, there’s a whopping $750 billion gap between the intraday high and low points of the crypto market. With this market madness going on, major exchanges have reported major congestion.

Except for Ethereum congestion, almost all exchanges have experienced severe congestion. https://t.co/gca2akvATc

— Wu Blockchain (@WuBlockchain) May 19, 2021

Bitcoin has now broken its crucial support of $35,000 and nose-dived under $33,000 as of press time. As of press time, Bitcoin is trading at a price of $32,984 with a market cap of just over $600 billion. In the last 24-hours Bitcoin (BTC) has lost over $250 billion from its market cash.

Well, the BTC price crash comes amid massive deposits at the exchanges as reported by CoinGape earlier today. CryptoQuant CEO Ki-Young Ju writes that it’s not the time for bottom fishing as whale deposits have shot up significantly.

$BTC price went down to 32k from 40k and this indicator still over 2 BTC.

Don't try to be a hero who captures the bottom.

Just wait for whales to stop deposits for selling in the next few hours. Be safe. pic.twitter.com/SdhAuthclT

— Ki Young Ju 주기영 (@ki_young_ju) May 19, 2021

The Altcoin Space Under Severe Pressure

Along with Bitcoin, the overall altcoin space has also lost $250 billion in the last few hours. One of the top-performing altcoins Ethereum (ETH) nose-dived close to $2000 levels registering more than 50% losses on the weekly charts. Just last week, ETH was trading at an all-time high of $4400.

Ethereum (ETH), however, has partially regained the lost ground and is currently trading at $2401 with a market of $278 billion. The gas fee on Ethereum has skyrocketed due to the liquidations taking place in the loan smart contracts.

The gas fee of Ethereum has reached an astonishing 1000Gwei. The reason is that a large number of loan contracts need to be liquidated and covered. Ethereum is close to US$2,000, a decrease of 38%. pic.twitter.com/iZcsZea4eb

— Wu Blockchain (@WuBlockchain) May 19, 2021

On the other hand, Ethereum fundamentals continue to show strength with large outflows from exchanges and higher inflows into the Ethereum 2.0 deposit contracts. It looks like someone bought this dip for Bitcoin as well as over $13K BTC moved out of Bitfinex.

However, the exchange reserves of ETH are still declining, and the ETH deposited in Ethereum 2.0 for collateral is still growing, and has not been affected by the fall in the price of ETH, showing the stability of the Ethereum ecosystem. pic.twitter.com/RNykr9A00b

— Wu Blockchain (@WuBlockchain) May 19, 2021

Almost every other altcoins in the market have lost in the range of 25-30% and even more. It will take some time for the markets and the investors to recover from the shock.