Crypto Market is undergoing severe correction as multiple news of crypto ban combined with rumors that US treasury is planning to charge several financial institutions for money laundering using cryptos made headlines at major publications. Though this is not something new to crypto investors but in the short term it has led to extensive Bitcoin liquidations.
Rumors, FUD Spoil Crypto Bulls Party
As if the FUD of Turkey banning crypto payments was not enough, today morning CNBC broadcasted a FUD of a “probable” crypto ban in India as well. The later is just an unconfirmed news and was already shared by reuters a month back. The question remains why CNBC is playing a month old news on loop at this time? CNBC circulated a news shared a week ago again today.
Crypto Investors need to understand above Indian crypto ban FUD is a proposed a bill, it is neither a law nor confirmed policy as of now. It needs to be passed in Indian Parliament to mean anything.
In the short term these rumors and FUD have led to panic selling and over $10 Billion worth of Bitcoin positions were liquidated in what seems to be worst ever Bitcoin Dip in such short duration. The Bitcoin price broke below earlier support levels and fell down to $50k levels. Major altcoins Ethereum, Litecoin, Bitcoin Cash also took a hit and are trading at critical support levels.
Is The Bitcoin Bull Run Over?
While many investors are panic selling Bitcoin bull run is far from over and the current price drop is largely a result of rumors and FUD. Many analysts are advising investors to avoid high leverage trading and focus on buying dips in spot. The amount of liquidation is an indication that trades are highly leveraged.
Events like this where we see almost $10 billion in CEX liquidations are really a stress test for these DeFi protocols. Some did ok but some really did so bad it’s hard to trust them with real money ever again. It was impossible to get an order in too and gas was 700+
— Larry Cermak (@lawmaster) April 18, 2021
Meanwhile, at the time of reporting crypto market is showing sign of recovery with BTC price again reclaiming $55k levels and other altcoins also showing significant recovery.