Crypto: Why is the market (still!) in the red?

The volatility storm strikes again at Bitcoin and its fellow cryptos, with a significant 8% regression in the TOTALCAP, as reported by CoinGecko. A setback that shakes the universe of digital assets.

Crypto crash: The markets in turmoil

Recent headlines touting the heights reached by Bitcoin and Ethereum do not hide the sudden corrections suffered by these cryptocurrencies. Bitcoin, after its triumphant passage above $70,000, has been slapped back down, dipping below $65,000. Meanwhile, Ethereum, the flagship of cryptos, surprises with its persistent dive, suggesting an even more dizzying descent for some informed observers. The saga continues.

Total #crypto market cap is down 8.4% today 🔴

Are you buying the dip? pic.twitter.com/YBP2rvhDk2

— CoinGecko (@coingecko) March 19, 2024

In just six days, the cryptocurrency markets have experienced a financial earthquake, losing a colossal sum of $230 billion in market capitalization. The reasons for this precipitous fall are multiple and concerning, reports FX Street.

The collapse is symptomatic of several alarming factors. On the weekly chart, Bitcoin has traced a bearish failure pattern (SFP), crossing the crucial threshold of $69,000. This warning sign urges investors to be cautious, reinforcing the climate of uncertainty.

The BTC’s momentum is slowing down, fueling speculation about the reasons for this sudden drop. A declining buying pressure has prompted market participants to pocket their gains, leading to a spectacular fall in the total cryptocurrency market capitalization, now estimated at $2.66 trillion.

The figures are unequivocal: over the last four days, the price of Bitcoin has fallen by nearly 10%, causing massive liquidations of $400 million in just 24 hours. Long positions on BTC, ETH, and Solana have been decimated, swallowing up millions of dollars in a flash.

BitMEX incident: A broadside on the crypto markets

In the already tense atmosphere of the markets, a recent event on the BitMEX derivatives exchange has sown further doubt. A mysterious entity unloaded over 400 BTC in a flash on the BitMEX BTC/USDT spot market, causing the price of Bitcoin to plummet to $8,900.

BitMEX has initiated an internal investigation, temporarily freezing withdrawals for certain accounts to shed light on the situation. The exchange assures that its trading platform is functioning as usual and that all funds are secure.

This incident rekindles concerns about the impact of Bitcoin ETFs on the cryptocurrency’s network. Arthur Hayes, the former CEO, doubts that a Bitcoin ETF could “completely destroy” Bitcoin, as a high concentration of supply might discourage miners, thereby threatening the network’s integrity and the very survival of the cryptocurrency.

In this climate of increasing uncertainty, investors must remain vigilant in the face of the rapid changes in the crypto markets.