Weekends continue to be a tough time for cryptocurrency holders. Stock markets close on Saturdays and Sundays, but digital assets trade 24/7, and Saturday has been a recurring slump in the crypto market for the past month.
Today, the cryptocurrency industry as a whole has seen a decline, but there are some that are more notable than others. Ethereum ((((Cryptography: ETH). Continuing the slide, it has fallen 5.1% in the last 24 hours as of 4:20 pm EST. Ethereum’s value has fallen 17% in the past week and 31% in the last 30 days, reaching a terrifying $ 3,000 price in this afternoon’s trading before a slight recovery.
Cardano ((((CRYPTO: ADA). Decreased 5.5% in the last 24 hours Shiba Inu ((((CRYPTO: SHIB). 5.9% decrease, universe ((((CRYPTO: ATOM). It has decreased by 13.7%.These are all known as Altcoin And while they are usually more volatile than their larger crypto rivals, these are a big drop no matter how you look at it.
The sharp drop in cryptocurrency values began around 11:00 AM Eastern Standard Time and lasted about two hours until it stabilized. Given the fact that it’s a weekend and the news and cryptocurrencies aren’t sold out entirely, this looks like a short-term trading phenomenon.
One notable factor is the number of digital asset trading accounts that have been liquidated due to reaching the margin limit. This is another way of saying that the exchange forced cryptocurrency holders to sell to ensure debt repayment. According to Coinglass.com, the $ 273 million crypto account they follow has been liquidated in the last 24 hours.Surprisingly, $ 71.9 million of that is in Ethereum and $ 53.6 million. Bitcoin ((((CRYPTO: BTC). Although the market capitalization of Bitcoin is much larger. These forced sales could be the reason for the significant decline in Ethereum, followed by the relevant cryptocurrencies building utilities.
Clearing data tells us a lot about the short-term movements of cryptocurrencies. For example, on December 2nd and 3rd, 2021, long positions of $ 636 million and $ 1.58 billion (positions that would make a profit if the price of an asset rises) were liquidated and the market fell. did. Today, only $ 211 million have been liquidated so far, but the $ 1.24 billion long positions cleared in the last three days are definitely putting downward pressure.
All investment markets are still trying to process confusing economic data. Omicron is sweeping the world and can have a negative impact on the economy.Inflation and the Federal Reserve are also seen in the United States Talking about rate hikes in 2022, This can also slow down the economy. These concerns have hurt growth stocks lately, as cryptocurrencies generally correlate with growth stocks and are declining as well.
Volatility is common in cryptocurrencies, but price trends have been rising for most of the last two years. Currently, prices are falling rapidly due to the impact of volatility on investors.
The decline may continue for some time as speculators and leveraged traders are kicked out of the market. But whether it’s finance, fashion, payments, or any other area, hundreds of millions of dollars have been invested to build the actual utility of cryptocurrencies, which makes me bullish in the industry. There is a reason. That said, it will be a bumpy vehicle, and I’m ready for further price drops before they get better.
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