Why did the crypto market crash?
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
$100,839.00
4.70%$3,821.97
6.05%$2.37
2.53%$227.00
6.57%$717.89
6.93%$0.410886
6.06%$0.999546
-0.09%$1.082
8.12%$3,819.94
6.12%$0.282792
5.85%$48.77
10.94%$0.00002879
7.71%$6.38
8.46%$4,538.90
5.67%$24.11
10.72%$9.00
9.17%$100,538.00
4.76%$4.51
23.96%$0.431834
3.01%$0.292822
4.72%$545.89
6.97%$0.00002489
9.32%$3,825.53
6.17%$17.11
13.31%$117.37
8.48%$9.49
0.21%$6.83
8.28%$4,029.79
6.04%$13.15
15.30%$13.08
12.93%$1.002
-0.04%$16.10
17.55%$0.633874
11.14%$0.99948
-0.04%$33.71
13.83%$0.182527
8.27%$9.54
10.48%$0.059249
9.40%$1.81
8.82%$1.34
11.67%$606.39
7.49%$3.19
17.92%$297.12
11.13%$0.163242
5.06%$1.002
9.30%$6.69
9.51%$4.28
7.67%$205.43
14.73%$0.447779
7.54%$25.03
0.75%$2.38
11.14%$1.25
10.38%$8.83
12.85%$55.12
5.25%$7.26
10.91%$1.88
10.03%$1.047
17.23%$3.04
8.17%$0.00003942
12.04%$2.33
7.55%$28.80
7.53%$0.285301
10.70%$1.78
7.21%$2.58
9.89%$4.51
24.08%$0.606797
11.78%$3.11
11.91%$0.00024298
10.04%$3,824.82
5.70%$6.33
6.11%$0.051385
14.48%$0.04356339
11.07%$142.36
5.73%$100,860.00
4.96%$0.03807134
15.00%$4,291.16
6.16%$1.91
23.63%$0.780806
13.92%$3,942.31
5.97%$0.182047
11.70%$4,008.28
5.56%$1.00
0.53%$1.91
5.30%$1,888.07
7.97%$1.09
6.39%$0.725587
-5.67%$0.02965844
0.61%$13.33
5.60%$0.440902
9.23%$0.271771
8.69%$12.47
6.25%$5.39
11.16%$2.19
19.56%$3,934.53
6.28%$23.50
10.72%$1.14
10.00%$0.978722
9.82%$1.48
5.85%$2.09
9.12%$0.655777
8.74%$100,583.00
4.52%$0.142532
-5.63%$8.10
1.60%$0.397271
8.95%$17.53
6.43%$1.10
4.93%$3.23
0.32%$100,907.00
4.92%$0.089389
-1.98%$1.17
8.91%$66.63
5.94%$0.00000136
10.61%$1.31
27.96%$39.45
14.68%$46.97
8.33%$18.40
11.39%$0.00000324
-0.44%$282.05
7.17%$7.99
10.23%$0.633862
10.73%$1.25
7.75%$0.654185
11.65%$1.28
8.67%$231.31
6.63%$0.119806
19.60%$1.53
8.34%$3,827.15
6.23%$4,000.28
5.44%$3.94
9.50%$4.99
18.25%$100,236.00
4.80%$3.51
8.22%$0.213511
9.45%$6.13
5.97%$4.04
9.47%$62.94
8.34%$2.91
9.57%$1.49
4.13%$0.344715
12.21%$0.797568
8.38%$2.09
8.96%$241.43
7.24%$0.00938171
11.18%$2.05
7.38%$0.01316859
29.54%$100,458.00
4.81%$102.95
9.57%$0.00000001
12.73%$0.00004495
9.04%$3,823.13
6.37%$0.792638
39.56%$0.237999
11.27%$3,826.07
6.31%$0.00837483
13.86%$0.411447
5.46%$15.77
13.87%$2.17
13.11%$0.91618
11.03%$0.00979625
5.41%$0.999664
-0.05%$0.0146967
8.81%$0.115604
9.56%$0.0086093
13.56%$6.89
14.27%$3.13
12.73%$36.21
9.72%$0.364993
11.03%$0.998631
-0.38%$0.00013331
9.14%$0.00174186
14.32%$0.712508
9.98%$276.20
7.47%$0.760925
11.89%$4,148.08
6.32%$0.490861
15.57%$5.12
-17.67%$2,721.73
0.69%$1.30
7.35%$0.66572
18.80%$101,111.00
5.76%$0.068379
10.01%$0.01438843
9.09%$3,825.52
6.50%$0.995551
-0.09%$2.01
8.75%$0.583297
10.76%$17.14
12.18%$38.17
9.09%$1.50
19.70%$0.0086335
9.92%$0.0000006
5.77%$48.67
8.20%$5.87
14.02%$0.00327187
10.84%$3,820.15
6.19%$0.07593
11.19%$1.35
6.51%$100,720.00
4.94%$3,826.79
6.41%$0.296771
7.76%$2.62
10.87%$0.080959
10.58%$0.02833001
8.85%$0.00696163
6.32%$0.998996
-0.05%$0.07805
6.33%$0.53075
35.72%$2,707.07
0.63%$0.300522
10.82%$9.35
-0.63%$0.625747
14.18%$0.00000427
11.47%$0.200341
8.38%$0.545898
18.55%$0.00695117
3.17%$6.30
5.81%$100,630.00
4.95%$4.02
17.18%$1.019
1.40%$0.00000024
7.42%$4,111.46
6.28%$4,001.28
6.48%$0.876511
7.01%$27.52
10.79%$0.04747255
12.67%$0.01434765
8.82%$1.15
8.31%$1.12
13.48%$0.667692
8.60%$5.97
1.67%$0.04887347
8.19%$57.24
10.90%$1.64
-4.03%$0.503676
10.27%$4.19
10.65%$0.085376
15.41%$0.04480175
6.58%$2.02
7.93%$3,829.94
6.45%$2.26
13.09%$1.47
9.81%$4.14
8.74%$1.045
-1.65%$0.290509
10.72%$0.433634
8.90%$4,226.39
5.60%$0.03520138
5.69%$0.744255
11.76%Like a hiker who lost her footing on a treacherous path, Bitcoin tumbled down the mountain on Saturday morning, falling to as low as $30,194, according to metrics site CoinGecko. Bitcoin’s current price is $30,884, marking an 8.8% drop in the past 24 hours.
Ethereum, the second-largest cryptocurrency, also had a calamitous start to the weekend. It fell by 8% to lows of $1,718 before zipping back up to its current price, $1,772. Overall, this marks a 7.9% drop in the past 24 hours and a collapse of 21% in the past week.
Others followed in the wake of the top two coins, which make up the lion’s share of the market. Binance Coin fell by 6.8%, Cardano by 7.5%, Dogecoin by 7.8% and Polkadot by 8.7%.
This resulted in a 10% drop in the global market capitalization of all cryptocurrencies, which now rests crestfallen at $1.29 trillion.
Weekends tend to be more volatile since the institutional investors who save the market from collapse and temper it against outrageous breakouts are away from their desks.
Some analysts think that the upset could stem from one of the largest expiries of Bitcoin and Ethereum options contracts. The $3.8 billion in options contracts, signed many moons ago, grant buyers the choice to redeem all of that crypto, which they can dump on the market should they so wish.
“I think it's plausible [it is causing volatility] since it's the largest ever options expiry [for Ethereum],” Ki Young Ju, CEO of CryptoQuant, which provides data for investors, told Decrypt yesterday.
So, where to next? Singaporean crypto investment firm QCP Capital predicted today that Bitcoin would soon reverse to $39,400, and that ETH would return to highs of $2,550. Deribit’s Bitcoin futures market is less optimistic, and traders there concur that Bitcoin should return to just $33,220 by this time next year.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.