BTC spot market selling at $9k low, El Salvador bought the dip!
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December 9, 2021Different financial markets across the globe are experiencing downfall nowadays. There are specific reasons that play a vital role in the downfall of the cryptocurrency market and the others. On Saturday, bitcoin fell in its prices by 20%, and along with it, other cryptocurrencies followed. It has indicated that risk aversion sleeping plays a crucial role across different financial markets globally. Being the most prominent cryptocurrency globally, Bitcoin stood as low as $42,296 before increasing prices. At the beginning of the day, it was trading at $47,600, while when the scenario changed, it fell very low. It has indicated that it will drop further after experiencing a slight recovery in its prices.
The prices for the second-largest cryptocurrency shareholder in the market, Ether, went as low as 17.4% during the trading. However, during the day’s closing, it stood at 10% lower than the opening value by the different aspects of the market. Therefore, the whole market is practising liquidation to work as a profit maximizer. Every investor who has invested in bitcoin ekrona and other popular cryptocurrencies is withdrawing their money from the market, indicating that it is about to collapse. Also, there was an overall decline in the market valuation of cryptocurrencies by 15%. It stood at about $2.2 trillion at the end of the day. Cryptocurrencies have high volatility, and therefore, investing money in them is riskier. If they perform such activities, it will panic the investors. Therefore, after declining by a bit of bit, it starts increasing its price but later on, it follows the same.
Inflation has been going up across the different regions of this world. It has led to the volatility period for different financial markets, and it is also imposing tremendous pressure on cryptocurrency.
Due to the massive inflation, the banks tighten up their monetary policy. It is to reduce the liquidity in the hands of people and hence can decrease the inflation in the market. However, detecting a novel Covid variant has led to panic among investors. As a result, there is again an uncertainty for the global economic reopening. According to data available on the internet, the global stocks are lower down by 4% after discovering a new COVID-19 virus variant. Also, different treasury has decreased because of this discovery.
Positions of leverage
The head of an Asia Pacific cryptocurrency exchange said that bitcoin leverage the buyers were flashed out because of the crash in the market on Saturday. There has been considerable uncertainty in the cryptocurrency market because of the discovery of the COVID-19 variant. Also, the cases appear in different countries of the world, which is a matter of concern for the different stock markets and cryptocurrency market investors. Moreover, the new variant is about to shake the different economies of this world. So the world needs to be prepared for the same. If taken lightly, it can pose a severe threat to the global economy, which is not something anyone wants after the recent crisis of COVID-19. Therefore, to prepare the whole world for any pandemic, the economy adds digital currencies to its financial system.
The highest value of cryptocurrency liquidation took place on Saturday after September 7. The value stood at about $2.4 billion, and it is not a minor amount. The data given by a cryptocurrency trading platform is available on the internet. Also, bitcoin was facing a lot of volatility. It has experienced a fall in its prices by $21,000 right after November 10. It has been a drastic fall for the whole cryptocurrency market, and therefore, every investor is under shock. It is the most significant decrease in the price of any cryptocurrency in the world after the bearish phase earlier this year.
Also, this increase in the bitcoin rate is exceeding more than any other digital or financial assets across the world. After accepting bitcoin as a legal tender by El Salvador, it also purchased the dip and added 150 more bitcoins to its collection. Also, El Salvador announced that it would make a whole city based on bitcoin after accepting it as a legal tender.
