Crypto market stumbles, losing 5%
Market picture
The crypto market has lost more than 5% in the last 24 hours, pushing the capitalization below $1 trillion. The sharp drop in FTT impacted Bitcoin and Ether and has attracted a significant market specter. The most considerable losses came in the Asian session, filled with algorithmic traders that took the price back to $19,400 at one point.
It should be noted that a sell-off did not follow the sell-off of the first and second cryptocurrencies in the markets. Once again, we must guess whether cryptocurrencies reflect financial markets’ internal risk appetite or have experienced a short-term technical sell-off. In the first case, market sentiment will deteriorate throughout the day. In the second case, BTCUSD will redeem throughout the day, confirming the market’s reversal to growth.
According to CoinShares, investments in crypto funds fell last week after rising slightly in the previous week. Outflows totaled $16 million compared to inflows of $6 million the previous week. Investments in Bitcoin fell $13 million, and Ethereum rose $3 million. Investments in funds that allow short positions in Bitcoin fell by $7 million. Investors have shown a lack of passion over the past eight weeks, CoinShares noted.
News background
Former director of MicroStrategy Michael Saylor called Bitcoin a “hope” for Lebanon, whose national currency has fallen 96% against the dollar, and inflation is in the triple digits. The Middle Eastern country has been in a deep financial crisis since 2019. New owner Elon Musk plans to temporarily delay or halt the development of some of the projects announced by the previous government, including reportedly work on a cryptocurrency wallet. The news has impacted. Dogecoin, which has been growing in hopes. To become the digital currency of the social network.
According to Reuters, British bank Santander will block transactions on cryptocurrency exchanges in 2023 to protect consumers from fraud. Wall Street Magazine reported that mining companies are forced to sell cryptocurrency mining equipment at a considerable discount to offset losses from a falling market.
