Sunday was a particularly bloody one for the crypto markets. If you are based in the US or somewhere with a similar time zone you would have gone to bed thinking that the crypto markets were strong and would be hoping to wake up with more of the momentum that has been created this past week.
Instead of this you might have opened up your phone or computer and needed your eyes and mouth to return to where they belong on your face. An astonishing 300 billion USD was wiped out from the crypto markets, effectively wiping out all the gains that have been made in the past two weeks.
Two reasons are being attributed to this decline. The first one is the fall in hash rate in China, which meant that China was unable to mine Bitcoin for a period of time. The other rumor was that authorities in the US were going to come down hard on businesses that have laundered crypto but these rumors, for now, remain unproven.
There is still the high likelihood that is just a classic case of whale manipulation with the prices being triggered by a sell-off which in return triggers mass sell-off across the board. If this is indeed the case we have nothing to worry about.
Almost Every Coin In The Top 100 Experienced Significant Losses
If you head over to coinmarketcap.com you will be able to get some sense of the carnage that has occurred today. The markets are starting to recover slowly now but the list of coins represents a sea of red.
Bitcoin, touched $51k but is now back at $55k and will hopefully work its way back to $60k very quickly. Meanwhile, Ethereum is still 8% down for the day. Coins like Litecoin and XRP have experienced 20% losses for the day which really do represent significant losses but this does need to be tempered with the fact that these coins have seen massive gains in recent weeks.
Dogecoin incredibly is 18% up for the day! Seemingly unaffected by the market’s mayhem. The only other coins in the top 100 to record gains for the day are Solano with a 16% gain and Nano with a gain of 21%. Ultimately we do expect the markets to recover relatively quickly but there is no getting away from the fact that this was quite a scary day for crypto holders.