Be the first to comment

Here are the reasons for the collapse of the crypto market today

  • The crypto market collapsed on Saturday, with the global market capitalization falling 5% to $1.05 trillion in the past 24 hours. The total liquidation reached US$350 million over the past 24 hours, with more than 170,000 traders liquidated. The largest single liquidation occurred on cryptocurrency trading platform OKX. It amounted to $2.18 million.

  • Bitcoin price drops by 5%. With a significant decrease in just two hours. BTC price fell to a 24-hour low of $25,500. Bitcoin is currently trading near $25,600. With a high probability of falling below the $25,000 level.

Ethereum price fell by 4%. With 24-hour lows and highs at $1,765 and $1,854. ETH price is currently trading below $1,750. Selling pressure continues to rise as trading volumes increase.

Altcoins such as Filecoin, Polygon, Cardano, Solana, Chiliz, Sandbox, Decentraland, Axie Infinity, and others are down more than 20%. Shiba Inu (SHIB) leads the cryptocurrency market crash. It decreased by 30% in the last 24 hours. Some dip buying was also recorded.

  • Reasons Behind the Cryptocurrency Market Collapse Significant liquidations in cryptocurrencies were recorded mentioned in the US Securities and Exchange Commission lawsuits against Coinbase (NASDAQ:COIN) and Binance. However, the massive liquidation came in response to Binance.US stopping USD fiat support on its trading platform and Robinhood delisting Solana (SOL), Cardano (ADA), and Polygon (MATIC).

The US SEC said that BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI are securities in the Binance lawsuit. The agency listed SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO as securities in the Coinbase lawsuit.

According to Coinglass, more than $300 million of long positions and $25 million of short positions were liquidated in the past 24 hours. Liquidations mainly occurred in Binance, OKX, and Bybit. With BTC ($47 million), ETH ($38 million), ADA ($15 million), SOL ($14 million), DOGE ($11 million), LTC ($11 million), FIL ($9 million), Matic ($8 million).

FIL Coin Grayscale Investments has also filed an application with the U.S. Securities and Exchange Commission (SEC) requesting the withdrawal of the Trust Registration Statement on Form 10 for the Grayscale Filecoin Trust. SEC staff continues to regard Filecoin (FIL) as a security. However, Grayscale says it will continue to believe that FIL is not a security.

Market makers like Jump Crypto and Cumberland have withdrawn all liquidity from altcoins. Market makers were caught dumping major cryptocurrencies on the Binance and Coinbase exchanges. US partners are reluctant to work with the trading platform. Causing a huge sell-off across the market.

Furthermore it . More than 4 trillion Shiba Inu (SHIB) tokens worth millions have been transferred from Shiba staking to cryptocurrency trading platform Binance. It led to a sell-off in SHIB and BONE prices.

said Scimitar Capital. The hedge fund rumored to be behind the massive $2 billion altcoin liquidation: “Our fund has made a strategic decision to liquidate our crypto holdings. And return capital to respected liquidity providers. We believe this move will provide improved stability and opportunities.”

#opbnb #ETH #Layer2 #BTC #crypto2023 #binancedz