According to CNBC, it was a combination of profit-taking and macroeconomic concerns that drove roughly one billion dollars worth of selling in the cryptocurrency market today. At 9:20 a.m. GMT, the price of bitcoin was down by 12 percent to $47,495. During the session, it fell to $41,967.5, bringing its total losses for the day to 22%.
The ether token, linked to the Ethereum blockchain network, fell more than 10 percent during the widespread selloff in cryptocurrencies. According to the analytics site, the market value of the 11,392 currencies tracked by Coingecko has fallen about 15% to $2.34 trillion. Last month, when bitcoin hit a record high of $69,000, that value temporarily surpassed the $3 trillion mark.
Financial markets had a turbulent week before the plunge. U.S. job growth in November slowed, and the Omicron coronavirus strain kept investors on edge, so global stocks and U.S. bond yields also fell on Friday.
An executive at Hong Kong cryptocurrency exchange EQONEX, Justin d’Anethan, said he was keeping an eye on the rise in leverage ratios and the movement of significant cryptocurrency holders from wallets to exchanges. The second is a clue that the seller intends to sell.
After taking advantage of the bullish bias and leverage provided by regular traders, “whales in the crypto world appear to have shifted coins to a trading venue,” he said.
As a result of the selloff, Coinbase Global CFO Alesia Haas and FTX Trading CEO Sam Bankman-Fried will go before the House Financial Services Committee on Dec. 8 to testify about the future of cryptocurrencies.
When it comes to cryptocurrencies and how they should be regulated, this is a historic opportunity for prominent crypto industry players to appear before Congress for the first time.
The second spot-bitcoin exchange-traded fund proposal from WisdomTree was denied by the U.S. Securities and Exchange Commission (SEC) last week.
Over the preceding 24 hours, approximately $1 billion worth of cryptocurrencies has been liquidated on Bitfinex’s digital exchange platform, according to data from another platform, Coinglass.
“Many investors who may have previously believed they missed the boat now have an opportunity to buy the drop. In the crypto market, we see tether purchased at a premium, which indicates that people are preparing to do just that “D’Anethan referred to the world’s most popular stablecoin.
When the cost of holding bitcoin via a perpetual futures contract fell below 0.06 percent in October, it indicated that traders had become negative.
For most of November, BitMEX’s financing rate was 0.01 percent, but now it is at 0.18 percent.