NewsletterHere’s What Led to the $500 Billion Crypto Market Mayhem Earlier Today
The crypto market recorded its worst day in six months as the majority of cryptocurrencies bled out in double digits. The crypto market mayhem saw the biggest liquidation day in 15 months as over $2.5 billion worth of leveraged positions got liquidated over the past 24-hours. The overall market cap fell by nearly 20% with over $500 billion getting wiped out in a matter of couple of hours.
The crypto market crash that flipped the sentiments on its head was believed to be triggered by a number of factors. The new COVID variant Omnicorn induced fears in the traditional market seems to be the primary reason. Market analysts have also blamed over leveraged positions and high funding rates on exchanges to be other factors that influenced the crypto market crash. The crypto funding rates have turned negative again and many belive its a bullish sign, even when majority of the market is trading in red.
Many also beleived the recent push for regulations in the US and call for strict policies on the cryptpo market especially stablecoins has also played a part in the recent crash. The Congress is going hold a hearing on December 8th where CEOs from top crypto platfroms such as Coinbase, FTX and several others would testify and try to lobby for progressive regulations.
Can Crypto Market Recover From the Current Downtrend?
After a highily bullish October, crypto pundits have predicted for a bullish final quarter, however, the start of December indicate otherwise. The Bitcoin Fear and Greed Index has dropped to “Extreme Fear” after a bearish one and a half month. Even though crypto market is currently going through a bearish downtrend, market analysts belive we hven’t reached a market top yet.
Plan B, a popular crypto analysts who has given a $100K Bitcoin price prediction based on the stock-fto-flow chart shared a 2017 bull cycle chart to point that the crypto market would absorb the loss before regaining the bulls.
For context, 2017 bull market pic.twitter.com/W16gCwTVve
— PlanB (@100trillionUSD) December 4, 2021
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Fed’s Jeff Schmid Flags Inflation Risk as Hopes of December Rate Cut Fade
- Whales and Institutions Bet Big On Bitcoin And Ethereum Despite Market Dip
- Breaking: Michael Saylor Debunks Rumor of Strategy Selling Bitcoin Amid Crypto Market Crash
- Peter Brandt Warns Bitcoin Could Dip Below Strategy’s Average Purchase Price as MSTR’s mNAV Falls
- Balancer Hack Update: Exploiter Begins Selling Stolen Tokens After Protocol Recovered $4.1M
- Bitcoin Price Pattern Points to a Crash to $62k as Fed Cut Odds Fall to 54%
- Zcash Price Defies Market Crash: Will Shrinking Exchange Netflows Keep ZEC Rallying?
- XRP, DOGE & ADA Price Outlook: How Low Can These Altcoins Drop Next?
- Ethereum Price Sheds 10% but Lands on the $3,150 Accumulation Base — Is a Buy-the-Dip Bounce Ahead?
- Is Shiba Inu Price Set for Recovery Amid Partnership with Unity Nodes to Expand SHIB Utility?
- Top 3 Reasons Pi Network Price May Surge Despite the Incoming Token Unlock
