The cryptocurrency market has lost more than 5% in the past 24 hours, pushing the market cap below $1 trillion. The sharp drop in FTT affected Bitcoin and Ether and attracted a wide spectrum in the market.
Bitcoin is now trading at $19.8000, with the biggest losses in the Asian session, filled with algorithmic traders, pushing the price back to $19.4000 at one point. It is worth noting that the sale process did not follow the sales process in the first and second cryptocurrencies in the markets.
Once again, we are forced to guess whether the crypto reflects the internal risk-taking attitude of the financial markets or whether we have seen a short-term technical sell-off. In the first case, the market sentiment will worsen during the day. In the second, BTCUSD will recover intraday and also confirm the market’s return to growth.
According to CoinShares, investments in crypto funds fell last week after a slight increase in the previous week. The outflow was $16 million compared to the $6 million inflow in the previous week. Bitcoin investment fell $13 million and Ethereum rose $3 million. Investments in funds that allow the sale of bitcoin have decreased by $7 million. CoinShares noted that investors have shown a lack of enthusiasm over the past eight weeks.
Michael Saylor, the former CEO of MicroStrategy, described bitcoin as a “hope” for Lebanon, whose national currency is down 96% against the dollar and inflation has reached triple digits. The Middle East has been going through a deep financial crisis since 2019.
Twitter’s new owner, Elon Musk, plans to temporarily or completely defer the development of some projects announced by the previous administration, including, reportedly, work on a cryptocurrency wallet. The news hurt Dogecoin, which has grown in hopes of becoming the social network’s digital currency.
According to Reuters, the British bank Santander will ban transactions on crypto exchanges in 2023 to protect consumers from fraud.
The Wall Street Journal reports that miners are being forced to sell crypto-mining gear at a huge discount to cover losses from a bear market.
By FxPro Senior Market Analyst Alex Kuptsikevich
Cryptocurrency Market Stumbles and Loses 5% – Coinphony [SV]