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| Alert: There have been sudden, drastic losses in alternative currencies! |
Alert: There have been sudden, drastic losses in alternative currencies!
Today, some altcoins saw an increase in the cryptocurrency market following a steep decline of major blockchain networks such as Solana, Matic and Cardano.
Yesterday, the value of three digital currencies dropped by over 20%, which could be due to investors becoming more risk-averse following the U.S. Securities and Exchange Commission's (SEC) filing of 13 charges against Binance, its president, and Coinbase USA. The SEC also labeled many popular digital currencies as securities at that time.
On Saturday morning, several major cryptocurrencies experienced significant losses. Solana (SOL), Polygon (MATIC) and Cardano (ADA) all dropped as much as 25%, leading some on Twitter to speculate if a big crypto fund was selling its assets due to low liquidity.
Cardano has experienced a 30.93% decrease in its market share over the past week, despite a 6.9% rise in today's trading. Similarly, Solana has seen a 28.12% decrease for the week but is currently increasing by 3.76%, and Polygon's weekly losses amount to 33.05%, though it is now rising by 1.51%.
The total value of all cryptocurrencies dropped to $1.04 trillion
The price of Bitcoin has dropped 5% this week, currently trading at $25,745.9 per ounce. Meanwhile, Ethereum has decreased by 7.65% and is priced at $1,784.92 per symbol.
What caused the crypto crash?
Cryptocurrency tracked futures experienced liquidations worth nearly $300 million in the early hours of Saturday, according to data from Coinglass. This surpassed the record nine-month liquidation numbers reported earlier this week.
Cryptocurrency liquidation is the forced closure of trading positions in the cryptocurrency market when a trader's account cannot cover their open positions due to big losses or lack of margin to meet required standards.
The SEC recently classified tokens issued by businesses, protocols like Polygon, Sandbox, FILcoin, and AXS as securities.
Some major retail trading methods, such as Robinhood, have stopped supporting ADA, SOL and MATIC tokens possibly due to regulatory filings.
CZ, the CEO of Binance, reported that on Saturday, $392 million was withdrawn from Binance in total.
Why is the crypto market crashing today?
The SEC has filed lawsuits against Coinbase and Binance, leading to a large number of liquidations in cryptocurrencies. This was in response to Binance.US ceasing support for USD cash on its trading platform as well as delisting Robinhood's Solana, Cardano, and Polygon.
The US Securities and Exchange Commission (SEC) has identified the following as securities in its respective lawsuits against Binance and Coinbase: BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI (for Binance), and SOL , ADA , MATIC , FIL , SAND , AXS , CHZ , FLOW , ICP , NEAR VGX DASH and NEXO (for Coinbase).
In the last 24 hours, over $300 million worth of long positions and $25 million of short positions were liquidated across major exchanges such as Binance, OKX and Bybit. The liquidations mainly involved Bitcoin ($47M), Ethereum ($38M), Cardano ($15M), Solana ($14M), Dogecoin ($11M), Litecoin ($11M), Filecoin($9M) and Matic ($8 million).
Grayscale Investments has asked the SEC to cancel its registration of the Grayscale Filecoin Trust on Form 10. Even so, the SEC still considers Filecoin (FIL) to be a security. Grayscale is arguing that FIL is not a security.
Market makers like Jump Crypto and Cumberland have taken away all of the buying and selling activity for altcoins. This caused a lot of people to sell their cryptocurrencies on Binance and Coinbase due to lack of trust in the trading platform, leading to a large drop in prices across the market. US partners are also not willing to work with it.
More than 4 trillion Shiba Inu (SHIB) tokens, worth millions of dollars, were transferred to the cryptocurrency trading platform Binance. This caused a drop in the prices of SHIB and BONE tokens.
Scimitar Capital, a hedge fund, recently announced that it has decided to liquidate its altcoin holdings worth $2 billion. They are returning their capital to respected liquidity providers in order to provide greater stability and better opportunities.
Predictions that Bitcoin will reach $1 million and the cryptocurrency market will be worth $20 trillion are seen as unlikely given the current crisis
Cathy Wood, the CEO of ARK Invest, has been an avid advocate of Bitcoin for some time now. She believes that its value will reach $1 million in the future.
Financial markets have always been unpredictable and unpredictable due to fluctuating prices and unclear regulations. However, the CEO of ARK Invest believes that digital assets will experience tremendous growth in the years to come.
In an interview with Bloomberg, Ms. Wood shared her continued optimism for Bitcoin's future, citing its volatility and uncertainty as further proof of its potential to reach $1 million in the next eight years. She previously expressed this same belief in 2022.
Ms. Wood had previously argued that more institutional investors would invest in digital assets, leading to a price of $500,000 within five years. She also suggested that Bitcoin provides investors with government protection as an added incentive for the prediction.
Ms. Wood believes that the value of Bitcoin will reach a new all-time high by 2030 due to the two predicted bull markets for 2024 and 2028.
If digital assets reach a value of $1 million per coin, their total market capitalization would be more than $20 trillion, making Bitcoin more valuable than the entire gold market.