Reserve

Richard

Bitcoin

<p>Happenings in the crypto market in the last few days have been nothing short of a bloodbath. On Monday, the flagship digital asset in the crypto market, Bitcoin fell below the $50,000 mark, marking a 21% drop since the beginning of August, according to <a href="https://coinmarketcap.com/" target="_blank" rel="noopener">data</a> from Coinmarketcap.&nbsp;</p> 
<p>Following that, liquidations in the crypto market rose above $1 billion. What is more? the general crypto market capitalization fell to under $1.7 trillion from over $2 trillion at the start of the day, marking a 15% drop and the largest daily decline since January 2022.&nbsp;</p> 
<p>Although the market has since seen a mild bounce, the reverberations of the crash are still there and investors continue to panic.</p> 
<p>Read also:<strong> <a href="https://technext24.com/2024/08/01/dogs-token-rewards-crypto-telegram/">$DOGS: This new crypto project will reward you with tokens for using Telegram</a></strong></p> 
<h4 id="the-state-of-the-crypto-market" class="wp-block-heading">The state of the crypto market&nbsp;</h4> 
<p>Bitcoin shed 25% of its total value in just 4 days, shrinking by $320 billion and the rest of the cryptocurrency market lost practically the same amount. The bitcoin sell-off wave caused altcoins to lose massively as well – the strongest bleeding of digital assets in over a year.</p> 
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<p>The scale of losses in the crypto market and the money lost by investors is also shown by data on the value of liquidations of long leveraged positions.</p> 
<p>According to a CoinGlass <a href="https://www.coinglass.com/" target="_blank" rel="noopener">report</a>, more than 289,000 traders were liquidated in the past 24 hours — with the total liquidations across centralized crypto exchanges amounting to $1.2 billion.</p> 
<h4 id="what-is-the-cause-of-the-crash" class="wp-block-heading">What is the cause of the crash?</h4> 
<p>On the surface, the escalating tensions in the Middle East and worries about the global economy’s strength appear to be the reason for investors’ confidence waning. However, some analysts have attributed the crash to the sudden change in sentiment about cryptocurrencies owing to the condition of the stock market.</p> 
<p>To put this into perspective, the S&amp;P 500 index lost nearly 2% last Friday and fell to a two-month low at 5,346 points. The tech-heavy market, Nasdaq slid even more sharply, falling below levels last observed in May.</p> 
<p>In the words of Arthur Firstov, the Chief Business Officer at <a href="https://mercuryo.io/" target="_blank" rel="noopener">Mercuryo</a>, a payment infrastructure provider for crypto:</p> 
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 <p><em>“The wider digital token space is following steep losses in global stock markets amid fears of a slowdown in the US economy that is spurring speculation of an emergency rate cut by the Federal Reserve. Panic has swept across cryptocurrency markets as participants witness waves of selling pressure.”</em></p> 
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<p>Some experts also cited the surging value of the Japanese yen, the state. of employment in the U.S., fears that the Federal Reserve may struggle, geopolitical tensions and the deflating of the AI bubble as other reasons to consider.</p> 
<p>The Japanese yen surged to a seven-month high against the dollar on Monday. This followed a series of economic data last week that heightened concerns about a potential US economic downturn and the likelihood of larger rate cuts from the Federal Reserve to stave off a recession.</p> 
<p>Bitfinex analysts identify these factors as the primary contributors to the recent downturn in the cryptocurrency market.</p> 
<h4 id="binance-ceo-says-no-panic" class="wp-block-heading">Binance CEO says no panic&nbsp;</h4> 
<p>In response to the market reality and the attendant uncertainty, the CEO of the world’s largest crypto exchange, Binance, Richard Teng has called for calm.</p> 
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  <img loading="lazy" decoding="async" width="1280" height="853" src="https://technext24.com/wp-content/uploads/2024/05/RIchard-Teng.jpeg" alt="Richard Teng - Binance CEO" class="wp-image-231157" style="width: 100%;height:auto">
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   Richard Teng – Binance CEO
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<p>In an X (Twitter) <a href="https://x.com/_richardteng/status/1820399869884027299?s=46&amp;t=jqcaUeCNyLKSkEd-Vi7PKg" target="_blank">post</a> on Monday, the Binance chief explained that the latest crash is owing to macroeconomic factors and not indicative of a long-term negative trend. He, however, warned that the possibility of the Federal Reserve considering cutting rates and geopolitical issues could still lead to more market swings.</p> 
<p>Read also: <a href="https://technext24.com/2024/08/01/platforms-nigerians-crypto-transactions/"><strong>An updated list of platforms you can use for crypto transactions in Nigeria in 2024</strong></a></p> 
<p>For Teng, the best bet is for crypto enthusiasts to stay up-to-date and continue building despite the market realities.</p> 
<h4 id="what-to-expect" class="wp-block-heading">What to expect?</h4> 
<p>At the time of writing, the price of Bitcoin has rebounded to around $54, 000 after some relief.&nbsp;</p> 
<p>Seasoned cryptocurrency proponent and researcher, economist Raoul Pal shares recommendations for all crypto traders and investors affected by the price plunge. He admits that “max fear” has come but expects all his followers to hold on.</p> 
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<p>In a <a href="https://x.com/raoulgmi/status/1820445153837879379?s=46&amp;t=jqcaUeCNyLKSkEd-Vi7PKg" target="_blank">post</a> on X, he foresees a strong upside as a main feature of the 2024-2025 period overall but warns that both a political and liquidity response might take time. Adding that during periods like this, it is essential to hold on and zoom out.&nbsp;</p> 
<p>“<em>Stay safe out there. Good things come to those who wait. Markets are never easy and a bull market’s job is to try to throw you off. Zoom out. Relax. This too shall pass.”</em> Raoul said.</p> 
<p>It is still unclear what the future holds for the market, and what will happen next is an open question, but if you want to try and take a side, Pal and Teng’s seems to be the most optimistic.</p>
<p>The post <a href="https://technext24.com/2024/08/06/1bn-wiped-out-crypto-blood-bath/">Over $1bn lost in crypto market blood bath; what is next for investors?</a> first appeared on <a href="https://technext24.com">Technext</a>.</p>

Over $1bn lost in crypto market blood bath; what is next for investors?

Technext.ng

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