Volatility in the market is back again as and major prices lost over 10% in a few hours. In the last 24-hours, the overall market has lost $26 billion currently being at $228 billion. After a week of a solid market rally, it looks like the bulls have lost the steam with bears taking over the charge.
In the last 24-hours, price lost nearly $1000 dropping below $7200 levels, according to the on CoinMarketCap. At the press time, () is at $7268 with a market cap of $128 billion. Besides, the daily activity looks high with volumes crossing $30 billion in the last 24 hours.
The reason behind this massive sell-off could be large sell orders triggering several stop-loss positions. Today, at 02:00 UTC, a massive sell order of 3,645 worth $26.8 million was executed and could be the major reason behind ’s sharp drop.
BitMex’s Massive Short-Selling
Furthermore, crypto exchange BitMex is the leader for offering short-selling and leverage, allowing investors to profit from the falling prices. Eric Conner, a developer at Gnosis, tweeted:
“For reference someone put a 5k sell on bitstamp, which bitmex uses for 50% of its feed and it appears to have tripped some algos which made a cascade on mex.”
He also hinted that with such massive volatility the possibility of arrival reduces further.
A whale crashes the entire crypto market 20% in 5 minutes with a single sell order on the books and people actually think an is coming? 🤣
— Eric Conner (@econoar)
Furthermore, global market analyst Alex Krüger stresses that with an overnight 10% drop in price, the popular narrative of acting as a hedge in the ongoing U.S.- trade war can be put to rest. He :
“We can now put aside that nonsensical narrative of as a hedge for US- trade wars. The move up was engineered by a handful of parties, and so was this crash. Not as sexy, I know”.
Altcoins Take a Major Plunge
Besides , the market is witnessing a heavy pull-back. Almost all of the top ten have lost over 10% today.
After massive rally over the last week, the world’s second largest price has slipped below $250. At the press time, is 8% down at $242 with a market cap of $25.7 billion. In comparison to other , has effectively managed to hold back its loss in single digits.
, on the other hand, has lost a whopping 15% wiping-off its early week gains. The has slipped below $0.40 and is currently at $0.38 with a market cap of $16.1 billion.
Commenting on the overall market drop, Jehan Chu, co-founder of Kenetic Capital :
“This last drop was likely caused by a combination of profit-taking and also algorithmic compounding the swift fall. We can expect these types of steep rises and drops to continue for some time until institutional investors grow market volume.”
Chu further added:
“The key takeaway from the past few weeks is that with each of these surges, the overall interest and investment continues to expand around a growing core of real use and .”
Published at Fri, 17 May 2019 10:02:59 +0000
