Home » Economy » Bitcoin plunged 22%, once collapsed to $42,000… 1 trillion won in cryptocurrency sold

Bitcoin plunged 22%, once collapsed to $42,000… 1 trillion won in cryptocurrency sold

picture explanationImage of US Dollar Bills and Bitcoin

The price of Bitcoin, the leader of the cryptocurrency trading market, plummeted 22% in one day, breaking the $42,000 level at one point.

According to the economic media Market Insider on the 4th (local time), the Bitcoin price plunged more than 20% in one day as of Greenwich Mean Time (GMT) and slid to $41,967.5 during the day.

Ethereum also plummeted by more than 10%, and the entire cryptocurrency sank.

Investors sold $1 billion worth of bitcoin and other cryptocurrencies, Reuters reported.

According to CoinGecko, a cryptocurrency data platform, the total market capitalization of 11,392 coins shrank by nearly 15% to $2.34 trillion.

When Bitcoin hit an all-time high of $69,000 at the beginning of last month, the total market cap of all cryptocurrencies exceeded $3 trillion.

Market Insider reported that the global financial market was exposed to great volatility due to the spread of ‘Omicron’, a new variant of the novel coronavirus infection (COVID-19), and the virtual currency market also plummeted.

According to Bloomberg News, “Another sign of risk aversion that is sweeping the financial market has emerged as cryptocurrencies such as Bitcoin plummet all at once.” signal”.

bitcoin weekly price chart

picture explanationbitcoin weekly price chart

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The Dow (0.17% ↓), Standard & Poor’s (S&P) 500 (0.84% ​​↓), and Nasdaq (1.92) on the New York Stock Exchange on the 3rd on the 3rd as the November employment indicators showed that the anxiety caused by the Omicron mutation was significantly lower than Wall Street expectations. %) and the three major indices all fell.

Some analysts in the cryptocurrency market have predicted that if Bitcoin fails to maintain the $40,000 support level, it could fall to the $30,000 level, the lowest level in July.

Anthony Trenchev, co-founder of cryptocurrency lending company Nexo, said, “Leveraged trading by cryptocurrency traders causes cascading sell orders and liquidations. You can go down again,” he said.

Katie Stockton, founder of Fairlead Strategies, a cryptocurrency market research firm, said that the price seems to have fallen further because of virtual currency derivatives, and diagnosed that the weakness in high-growth technology stocks, which has a positive correlation with Bitcoin, is also a bad news for virtual currency.

On the other hand, Justin Deanathan of the cryptocurrency exchange ‘EQONEX’ said that it is a buying opportunity, and that many traders in the cryptocurrency market are preparing cash for additional purchases.

According to CoinMarketCap, a cryptocurrency information site, as of 2:05 p.m. eastern time in the US, the price of Bitcoin reduced the drop and traded at $48,940.50, down 10.92% from 24 hours ago.

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