The market turmoil has proved that it’s a tough environment in which to be a cryptocurrency investor. But, like any other market, it can be shaken to its core by extreme events – as is the case now, with the crypto markets being shaken by a number of headlines.
Cryptocurrency markets appear to be correcting, with the price of Bitcoin (BTC) falling from its recent high.
Cryptocurrency markets are having a rough day today. Polkadot (DOT) is down 5% as markets drop, and Dogecoin (DOGE) is down 9%.
On the basis of regulatory developments out of America, the crypto market experienced a small sell-off this morning, with several large-cap cryptocurrencies falling as much as 5%.
Polkadot, a high-speed blockchain technology, and Dogecoin, a meme currency, led the red charts, both falling 5% as of Tuesday morning but rebounding somewhat as of press time. As of Tuesday afternoon, DOT was trading at $17, while DOGE was seeing purchasing at $0.19.
Bitcoin, the world’s most valuable cryptocurrency by market capitalization, dropped slightly (-3.7 percent) from $39,700 to $38,000. It is now trading below its 34-period moving average (a measure used by traders to identify market trends based on previous prices), but support levels of $38,000 and $37,000 remain in place.
BTC/USD image courtesy of TradingView.
Ethereum, the world’s most popular blockchain, fell -4.5 percent Tuesday morning, dropping from $2,600 to almost $2,400, although it remains above its 34-period moving average. The dip, on the other hand, is likely to be pulled up: The ambitious EIP-1559—a plan to make Ethereum transactions more efficient by utilizing a hybrid system of base fees—is scheduled to be implemented on the mainnet shortly, and the asset has favorable catalysts lined up for later this month.
TradingView image of ETH/USD.
According to data from Bybt, an on-chain analytics platform, the downward price shift resulted in approximately $352 million in ‘liquidations.’ For the uninitiated, “liquidations” are when leveraged positions are automatically closed down by exchanges/brokers as a “safety measure.”
Futures and margin traders put up a modest amount of collateral before making a transaction, as they borrow money from exchanges (typically in multiples) to make larger wagers. As prices go against the trader’s position, the capital is liquidated.
Over 53,891 traders were liquidated in the last day, with the biggest single liquidation order—a Bitcoin (BTC) worth over $6 million—happening on futures giant Bybit.
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Bitcoin, Ethereum, Ethereum Classic, Litecoin, and Bitcoin Cash have declined in value following a positive start to the week.. Read more about dogecoin news and let us know what you think.
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