The holiday malaise in the cryptocurrency market is officially over. Bitcoin price lost its balance and fell off the cliff, breaking the $28,500-29,000 level all the way to $25k each. On the ByBit exchange, declines reached $24,200. What caused such a sharp decline? Stocks in the US market in a correction, the continued decline, among other things due to the minutes of the meeting of the Federal Open Market Committee. China’s Evergrande declares bankruptcy, SEC gets green light to appeal Ripple ruling, Elon Musk allegedly sold all of SpaceX’s bitcoin. The US government is paying more and more for its bonds.
Bitcoin price has fallen off a cliff
It gradually bled, and bitcoin lost ground under its feet, which finally led, around midnight on 08/18/2023, to a long squeeze, that is, a massive liquidation of long positions that bet on growth. BTC rate. On the ByBit exchange, depreciation has reached $24,000 per share.
More than $130 million in long contracts has been liquidated, the most since the FTX stock exchange crash.
See also: Vitalik Buterin: Ethereum accumulation has a backdoor. “I will never get all my ETH”
Long list of bad news
Several reasons can be listed. The first is definitely long-term Stagnation and impatience in the cryptocurrency market have led Bitcoin and the cryptocurrency to slowly test short-term support levels. Add to that a correction and profit-taking in the US stock markets, and you have a recipe for disaster. All it asked was the trigger. Here are some of them:
As analyst Jacek Rzeźniczek wrote on the analytical portal Stooq.pl:
“There is another bearish session behind us as part of the correction that started at the beginning of the month. Today, the downside was set by yesterday’s bearish reaction on Wall Street to the release of the July FOMC meeting minutes. Investor concerns about the continued restrictive monetary policy of the Fed and other central banks regarding the specific risks of inflation growth caused a global sell-off, which also affected our stock exchange. After a lower opening, the market tried to defend itself in the following hours, but before the start of the monetary session on Wall Street, it regained supply again and the WIG20 index was almost below the psychological barrier of 2000 points.
The government recently had to pay record highs for US bonds.
Chinese real estate giant Evergrande has filed for bankruptcy. Previously, the company’s problems caused huge swings in the stock markets. How many shell companies are still on the Chinese stock exchange?
Court gives green light to US Securities and Exchange Commission (SEC) to appeal SEC ruling against Ripple ruling, which has been going on since 2020. Remember: the point is that the company responsible for the XRP cryptocurrency has been accused of being an unregistered securities dealer. A recent favorable ruling from the Federal Court partially settled the lawsuit in favor of Ripple. One could be tempted to say that the future of most altcoins depends on this judgment. After the resumption was announced, XRP fell by more than 20%!
See also: The Securities and Exchange Commission (SEC) has decided to implement the Spot Bitcoin ETF!
There have been reports that Elon Musk, the tech visionary, billionaire, and cryptocurrency enthusiast, has sold all of the cryptocurrencies owned by SpaceX. The tokens held were supposed to be worth $373 million USD. The source of the information is the American Wall Street Journal.
Fun fact: Musk’s alleged sale of BTC was one of the factors that led to the crash of the cryptocurrency market in the summer of 2021.
The information is hot. We will keep you updated on the situation.
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