Claim BonusHere’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.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Trump Says Interest Rates Will Come Down Once Fed Chair Is Replaced
- Why Monad Token Price is Up Today?
- Strategic Bitcoin Reserve: South Dakota Introduces Bill to Invest in BTC as U.S. States Explore Crypto
- Trump Speech in Iowa Today: Possible Impact on Stocks and Crypto Market
- XRP Payments Utility Expands as Ripple Launches Treasury Platform
- Shiba Inu Price Outlook As SHIB Burn Rate Explodes 2800% in 24 Hours
- Pi Network Price Prediction as 134M Token Unlock in Jan 2026 Could Mark a New All-Time Low
- Bitcoin Price Outlook as US Dollar Index Hits 4-Year Low, Gold Soars
- Stock Market Today: Nasdaq, Dow, S&P 500 Futures Rise Ahead of Fed Meeting, and Jobless Claims
- Bitcoin And XRP Price Prediction Ahead of FOMC Meeting Tomorrow, Jan 28
- XRP Price Prediction as Ripple Scores Big Partnership in Cash-Rich Saudi Arabia
