The crypto market is known to be volatile as occasional ups and downs are often noted for various digital assets. A decrease in the prices of some cryptocurrencies has been noticed once again, in the last few hours. This has resulted in total liquidations in the crypto market to sum up to $1 billion.
The values of the top two cryptocurrencies, BTC and ETH, have slightly plunged. However, the long-term crypto enthusiasts and investors are optimistic regarding the decrease to be short-lived.
- Bitcoin is currently trading at $33,367 (at the time of writing)
- Ethereum is currently trading at $2,025 (at the time of writing)
The last time both crypto assets were seen to decline, the Whales and long-term investors made use of the low prices and bought on the dip, which can be expected once again. People who have been planning to invest in crypto can also assess their suitability and avail themselves of the opportunity to buy either of the digital assets at a low price. Whether novice parties choose to buy BTC or ETH, they can use well-known exchanges such as SwissBorg or Kraken (U.S. citizens).
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Do you Know the Essential Details?
According to reports, the crypto market has lost approximately $120 billion in a day as the digital assets were seen to decline in the last few hours. Bitcoin was noted to be trading at around $36,000 during the weekend, however, it was quite brief as the flagship crypto asset is currently below $34,000 (at the time of writing).
The drop in BTC’s price also impacted other crypto assets, which has resulted in the total liquidations of around $1 billion as mentioned earlier.
Here are a few reasons that are speculated to contribute to this drastic change in the crypto market.
- The Chinese authorities have been doing a crackdown on mining operations all over the country.
- As a result of the shutting down of BTC mining facilities in China, the BTC hashrate has decreased to 46% (currently 91.2 EH/s). This is the lowest level of BTC hashrate in the last 8 months.
- The third-largest bank in China, the Agricultural Bank of China, has now prohibited its customers from using cryptocurrencies.
These factors have not only affected Bitcoin but it has been noted that the largest single liquidation came from EOS.
The price of EOS has seen a decline of 15% in a day, which has been damaging for EOS traders as well as the overall market.
Bitcoin, on the other hand, has seen a decrease in its price but it continues to stay afloat. According to a recent tweet by Michael Saylor, MicroStrategy CEO, Bitcoin is an underrated asset that is likely to surge higher than most expect.
He also shared his opinion that BTC should not be sold by people who have invested in it or have been hodling it. Therefore, if it seems suitable you can use secure exchanges and safely purchase Bitcoin while the price is low.
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Is It Cause for Concern for Crypto Investors and Traders?
People who have been in the crypto space are quite familiar with the volatility and risk that are associated with digital assets. Sometimes these factors keep people from investing in digital assets or becoming crypto traders. In other cases, people prefer to step into the world of crypto while understanding that risk and reward go hand in hand.
While investing in crypto assets is a matter of personal preference, a more important question is for the existing investors and traders. Should they be concerned, considering the current crypto market situations?
After China’s initiative to shut down BTC mining facilities, many Bitcoin miners have been seen to migrate to other places. North America has become one of the top destinations for miners, which means the flagship cryptocurrency is likely to be mined, despite the hashrate drop mentioned earlier.
Therefore, whether you are an existing crypto investor or trader, you should not be concerned yet. Instead, you should make sure you use the safest crypto exchanges to purchase or trade crypto.
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