This Monday (06) Bitcoin (BTC) remains below US$ 48,000, accumulating a 3.8% drop in 24 hours, according to CoinGoLive . The bloodbath also spills over into alternative currencies, so the market capitalization has dropped to $2.2 trillion.
Check out what happened after the weekend sales in the cryptocurrency market in the Post-Apocalyptic Summary, as well as the main highlights in the traditional markets for this week.
Bitcoin below US$48,000
It's safe to say that the price of bitcoin has seen better days. On Friday alone , for example, cryptocurrency traded at around $58,000, after another unsuccessful attempt to overcome resistance at $59,000.
This is where the situation took a turn for the worse, as the BTC first plummeted to $51,000, before another round of liquidations brought it to a low of $42,000. Then the asset rebounded and approached $50,000, as reported yesterday.
This morning, the BTC has returned to around $48,000 and its market capitalization has dropped to just over $900 billion.
As it stands now, the coronavirus formed the backdrop for the instability, with bitcoin (BTC) being sold dramatically in a run that totaled 60% over the course of a single week. All this chaos attracted comparisons with similar moves in March 2020.
This time the stakes weren't as high, leading to descriptions of a “mini” repeat this month. As we reported , settlements soared to $2.5 billion after this heightened volatility, with 400 traders liquidated.
A key difference between March 2020 and today is in the composition of the market: 18 months ago, leveraged traders and their influence in markets were a much smaller phenomenon.
“This drop in Bitcoin was NOT driven by sentiment,” said Danny Scott, CEO of brokerage CoinCorner, in a series of tweets on Saturday.
“It was driven by the leverage and liquidation of players. The feeling is still very optimistic. ”
While sentiment remains intact, Scott argues, the momentum is serving to change the positive mood and he expects 2022 to end in a boom rather than a dip. March 2020 saw a slow recovery from lows, which only accelerated about eight months later.
Meanwhile, a look at the Crypto Fear & Greed index highlights the clash among many market participants, with 16/100 scoring both “ extreme fear ” and its lowest score since July. Fear has not been so low since the fall in May this year; comparable to a funeral.
Important events in national and international markets
In the coming days, important events may bring volatility to trading sessions, both in Brazil and abroad. The decision by the Monetary Policy Committee (Copom) on the direction of the Selic, on Wednesday, and the US inflation data for November, on Friday, should dominate investors' attention.
In Brazil, the sequence of worse-than-expected indicators helped to contain bets among market participants that the Copom would be forced to intensify the pace of Selic hikes to bring inflation back to target – a move that started this week above based on statements by BC president Roberto Campos Neto .
Ibovespa closed close to 105 thousand points. In the FX market, movements were heavily influenced by US economic data in recent days. After a sequence of speeches more inclined to the withdrawal of stimuli by the Fed's directors, not even the generation of jobs well below expectations managed to take the strength of the dollar .
Also read: Bitcoin maintains strength amidst China's FUD
Asian stock markets ended the session in decline, with the focus concentrated on Evergrande, after warning that it may run out of money to honor a commitment with creditors. Shares in the Chinese developer tumbled 19% to their lowest level in 11 years, hurting markets across the region.
Alternative currencies also fell sharply on Saturday morning and attempted rally sessions on Sunday. Today, however, most are in the red again.
The result of the main altcoins in the last 24 hours is as follows: Ethereum (-6.11%), Binance Coin (-4.64%), Solana (-9.97%), Cardano (-7.31%), Ripple (-7.82%), Polkadot (-10.65%), Terra (-19.86%), Dogecoin (-8.09%), Avalanche (-13.27%) and Shiba Inu (-10 .04%).
According to CoinGoLive, the market capitalization of all crypto assets has shrunk to about $2.2 trillion on Monday.
Follow the crypto market news on the Cointimes Telegram group ( log in ) and have a great day of trading.
Bitcoin content is under $48,000 and post-apocalyptic sentiment dominates the market – Market Summary first appeared in Cointimes .