Bitcoin, the world’s largest cryptocurrency, is now at 5% below its $20K mark, which has been maintained for just a few weeks. However, during the short rally a few weeks back, Bitcoin’s valuation recovered from its 3-month low, shooting above $21,000.
These gains brought hope to the crypto market and boosted investors’ confidence that the crypto winter is about to end. But, investors’ hopes were dashed by the November 7 market record, which saw many cryptocurrencies fall back to their declining state, including Ethereum and Bitcoin.
Billy Markus is the creator of Dogecoin and believes Bitcoin might reach $100,000 some day. This was his opinion in response to Madam Doge, a Twitter user who lamented BTC’s current price while citing Michael Saylor’s Bullish Bitcoin predictions.
Markus stated that Bitcoin would rise to that level in the future, when 100k dollars would buy sandwiches due inflation or when some of its current users may have passed away. Madam Doge began the conversation complaining about Bitcoin’s low price. Markus replied that it was because of massive sales.
Some possible causes of Bitcoin’s decline
Bitcoin traded at $19,500 in the past 24 hours. It has fallen below $20,000 within the last 24 hour. It was trading at $20,000.400 just 24 hours before. That level is the same one it maintained for over two weeks. This performance led to speculation that BTC was retracing its upwards trend.
A Coinglass report states that $112.83million in cryptocurrency was sold, and 95% of the long positions were wiped out. Additional data about the large sell-off was also available, showing liquidations in excess of $300 million.
The market volatility often depends on Bitcoin’s performance. But the current situation is quite different. The liquidation data shows that Ethereum and FTT were probably the cause of Bitcoin’s massive sell-off.
FTT lost 19% because of the feud between Binance FTX and Binance. Further, FTX was forced to sell its Ethereum holdings due to insolvency concerns. Santiment’s report confirmed the increase in selling pressure. The blockchain analytics firm also confirmed the offload of ETH from FTX’s ETH wallets.
Within a couple of days, FTX drew 300,000.00 ETH from its wallets. This created high selling pressure in the Ethereum markets. XRP is down 6% and Ethereum has dropped below its psychological $1,500 level.
Dogecoin And Other Memecoins Recover
Meanwhile, the memecoins which have been in the limelight following Elon Musk’s Twitter acquisition are also down. Dogecoin has suffered a much more severe loss than Ethereum or Bitcoin with a valuation of approximately 15%, and Shiba Inu (SHIB), dropped by 8%.
DOGE currently trades at $0.08667 with a volume of $2152,858,888. SHIB’s current price is declining, with a 24-hour trading volume of $493,920,114.
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