Crypto markets are in the red after Bitcoin crashed in the early hours of May 9.
According to CoinMarketCap, bitcoin prices continued to plummet, bottoming out at $33,913 per coin at dawn on May 9, before bottoming out again in 2022.
The price drop has shrunk the market value of the world’s largest digital currency to $645 billion. However, BTC’s 24-hour trading volume increased by 50%, hovering around $37 billion. According to Coinglass, the early morning Bitcoin crash on May 9 left more than 65,000 traders out of pocket for derivatives trading.
The number of liquidated positions has fluctuated around $270 million over the past 24 hours. According to Decrypt, the price of Bitcoin fell by more than 8% in a week. Bitcoin has lost nearly 50% of its value since its peak. The recent drop in BTC has put the cryptocurrency market in the red.
Ethereum, the second-largest cryptocurrency in the market, fell more than 5 percent last week. Other platform coins such as Solana (SOL), Terra (LUNA), Avanlanche (AVAX) are also down more than 10% in the past 7 days.
According to Decrypt, the reason for the volatility in the cryptocurrency market is due to global macroeconomic influences. Inflation has increased, and governments around the world have had to raise interest rates to overcome the problem.
As a result, both the stock and cryptocurrency markets fell sharply, spooking investors. According to Alternative, cryptocurrency investor sentiment is currently hovering around 11/100, in “extreme fear” territory.
When Bitcoin came out, the blockchain industry experienced its ups and downs. A Decrypt expert said that if history repeats itself, a sharp drop in prices will help to “clean up” the market and restructure the blockchain industry.
The same thing happened after Bitcoin crashed in 2018. When it booms again in 2021, blockchain technology gets even better. A series of NFT platforms have emerged, eclipsing the already very old CryptoKitties game.
The price of Bitcoin has been steadily declining since April 5. Prior to this, the cryptocurrency market started to fall following news about the Federal Reserve (Fed). The Fed raised interest rates by 50 percentage points (or 0.5%). This is the first time in 22 years that the Fed has reported such high earnings.
Information about cryptocurrencies in the article is not investment advice from Zing News. Cryptocurrency investment activities are not recognized and protected by Vietnamese law. Cryptocurrencies always carry many financial risks.