Cryptocurrency markets are experiencing a “black Monday”. There are huge decreases in all cryptocurrencies, especially Bitcoin. The total volume of the markets has decreased to half of what it was a few months ago. Let’s take a closer look at the drop that has taken root for crypto money investors.
As a matter of fact, the cryptocurrency markets have been shaky for a while. Bitcoin, which was in a bumpy process, was also crushing altcoins. Now, it seems that a new turn has been entered in the markets. Because Bitcoin is trading at 25 thousand dollars as of the time of writing this article, which means; As of now, investors are back to the point in 2020. Bitcoin last saw these levels at the end of 2020.
Technical analysis and charts are futile
*Bitcoin 1-day price chart. Source: Coinmarketcap
A significant portion of Bitcoin investors were trading using technical analysis, which means graphical interpretation. There was a general perception of support according to the charts. This support was the band of 29 thousand dollars. In fact, those who relied on technical analysis were right. When the Bitcoin price fell below the $29,000 levels, it reacted and bounced back up. But this time nothing like that happened. Almost all the analyzes that have been done so far have been in vain.
Bitcoin’s loss of more than 8 percent in the last 24 hours had a greater impact on altcoins. Ethereum dropped by around 8.5% to $1,320, Binance Coin fell to $237, Cardano (ADA) lost 10% to $0.45, and Solana, which lost more than 12 percent, fell to $28. Same with Dogecoin and Shiba Inu.
The reason for the decrease is not known exactly: However, there are some doubts
It is not possible to say the reason for the decrease in the crypto money markets. While some point to the inflation figures in the USA, others think that the attack on the Celcius Network triggered the decline. Celcius, one of the largest loan providers in the crypto money world, announced that it has taken a new decision to stop withdrawals, transfers and exchanges. This caused the institution’s cryptocurrency to depreciate by around 50 percent. Some industry sources state that this is thought to be a second LUNA case, which turns the markets into a bloodbath.
Regardless of the reason for the decline, it is possible to say that confidence in the crypto money markets has decreased. So much so that the overall size of the markets had increased to 3 trillion dollars in the last months of 2021. Now, according to Coinmarketcap, the total money in the crypto money markets is 1 trillion 28 billion dollars…
This content is not an investment advice.
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