It was better that you hadn’t even woken up: the slump in the cryptocurrency market that began on Friday afternoon (03) intensified during the early hours of Saturday (04). Bitcoin, Ethereum, Cardano, Solana and XRP, among other currencies, have drops of more than 15% in the last 24 hours.
Bitcoin lost $50,000 support. The asset is around US$ 47,800, according to data from Coinmarketcap, but reached US$ 42,000 at Binance. In Brazil, according to data from the Bitcoin Portal index, the price at the time this text is written is R$277,000, but it has reached a minimum of R$266,000. In reais, this is the lowest value since October 5th.
The market lost about US$400 million in total in the total market cap of cryptocurrencies.
The other cryptocurrencies have been following the fall. The second-largest by market value, Ethereum, is also on a downward trajectory, having lost support from the $4,000.
Cardano and Solana also melted and falls are close to 20%. Cardano was already on a trajectory of sharp decline compared to the other top 10 currencies in the market.
Sales volume was so strong that at broker Huobi, the asset was traded at US$ 28 thousand, on par with stablecoin USDC, given the pressure for liquidation. The data was caught by journalist Colin Wu, who shared it on Twitter.
Despite the sharp drop, the bitcoin blockchain has not had a spike in activity. THE mempool follows ‘cheap’, which means that there was no increase in sending bitcoin to exchanges.
Reasons for the fall of Bitcoin
There is still no consensus in the market about what caused the fall. There are insecurities regarding the Ômicron variant and “non-transient” inflation in the United States, which creates a degree of uncertainty for institutional investors.
Another factor is the growing prospect of rising interest rates, which reduces investors’ appetite for risk.
A final factor, albeit a minor one, may have been a further provocation by Elon Musk regarding web 3.0. The creator of Tesla posted a new meme in which he makes fun of people who are talking all the time about DAOs, cryptocurrencies and Web 3.0.
The last double-digit correction, of about 15%, occurred in early September, the day El Salvador made bitcoin the country’s official currency. At the time, the asset reached R$ 237 thousand. The next day, there was another 10% drop.