Crypto Market Is Recovering Beautifully, Double-Digit Gains Recorded
Now, for the fourth time in a row, Bitcoin prices have corrected after making a new ATH in every single month of 2021. After falling to late last month levels, we are back at a price last seen just 10-days back.
After a rough weekend, the crypto markets are recovering nicely.
As we reported, more than a million traders were liquidated for over $10 billion on Sunday as cryptocurrency prices crashed.
The price of Bitcoin went down to $50,000 yesterday and is currently trading above $57,000. Much like the trillion-dollar market cap crypto’s prices, the hash rate is also recovering, which took a hit after a blackout in China’s Xinjiang region. Edan Yago, co-founder at Bitcoin-based decentralized finance protocol Sovryn said,
“Typically shocks to hash rate do not cause price drops. A hash rate reduction slows transactions, which ironically makes it harder to move coins to exchanges for sale. The recent price drop is well within the bounds of typical volatility, it is noise, not signal.”
There has been much speculation about what exactly started this sell-off. Besides the drop in hash rate, people blamed it on the 9k BTC moved on Binance, Turkey’s central bank banning the use of cryptos for payments, and unfounded claims of the US Treasury going after financial situations for money laundering using cryptos.
“The market has become overly aggressive and bullish on everything,” said Edward Moya, senior market analyst at OANDA. “It could have been any bearish headline that could have triggered this reaction.”
It’s possible these factors spooked the market but what’s important is this sell-off only resulted in sending BTC price to late March levels. And already we are at a level we were just 10 days back.
More importantly, such drawdowns are not new in the bull markets. It’s four times in a row now that Bitcoin has rallied strongly every month of 2021 and then had a pullback to normalize the extremely bullish and leveraged condition.
Once the heated funding rates on perpetual contracts get normal, the market returns to making new all-time highs.
In fact, unlike the 20% to 30% corrections we have seen in this bull run, the 2017 bull market experienced rather deeper ones at 30% to 40%.
As for the market top, though anything is possible, it hardly could be one if past performance is any indication. As we stated before, the new ATH of about $65k is only 225% above the 2017 peak of $20k, while this $20,000 was 1,578% higher than the 2013 peak, which was 3,590% higher from 2011 ATH.
RUNE and YFI lead the DeFi bounce with BASED up 214%, NEO 48%, DigiByte 32%, and UMA 26%.
RUNE -7.51% THORChain / USD RUNEUSD $ 6.58
-$0.49-7.51% Volume 59.87 m Change -$0.49 Open $6.58 Circulating 224.41 m Market Cap 1.48 b 1 w DeFi Autumn after Solana Summer? Traders Still Short as Bitcoin Jumps to $48k and Ether to Nearly $3,700 3 w DeFi Rallies Towards New Highs As Multiple Layer 1 Blockchains Amaas $50 Billion in TVL 1 mon Driven by Real Demand Bitcoin Hits Resistance but Retail and Speculator Euphoria Is Not Here Yet YFI -3.47% yearn.finance / USD YFIUSD $ 28,425.74
-$986.37-3.47% Volume 256.16 m Change -$986.37 Open $28,425.74 Circulating 36.64 K Market Cap 1.04 b 2 d YFI Creator Andre Cronje Launches a Vampire Attack on Popular Ethereum NFT Marketplace OpenSea 2 w More Than 50% of Ethereum Hashing Power is Participating in Protecting Users from Malicious MEV 1 mon YFI’s Andre Cronje Builds a Tool to Bribe Curve Token Holders, Proposes to Implement in DeFi Blue Chips Too NEO -4.91% Neo / USD NEOUSD $ 36.41
-$1.79-4.91% Volume 227.56 m Change -$1.79 Open $36.41 Circulating 70.54 m Market Cap 2.57 b 1 mon Cross-chain Poly Network Gets Hacked for Over $600M, Exchanges & Stablecoin Issuers Act to Save the Lost Funds 4 mon Polkadot to Roll Out Parachains on Kusama Canary Network, the Final Phase Before Full Launch 4 mon IOHK Unveils ERC-20 Converter Tool for Testnet, Allowing Ethereum Tokens to Migrate to Cardano DGB -5.34% DigiByte / USD DGBUSD $ 0.04
$0.00-5.34% Volume 21.49 m Change $0.00 Open $0.04 Circulating 14.71 b Market Cap 617.85 m 3 mon Interoperability Project Ren Integrates With Solana, Adds Direct Bridge For Bitcoin 5 mon Crypto Market Is Recovering Beautifully, Double-Digit Gains Recorded 8 mon Rapper Soulja Boy Reveals His Crypto Bags UMA -5.85% UMA / USD UMAUSD $ 8.66
-$0.51-5.85% Volume 39.23 m Change -$0.51 Open $8.66 Circulating 62.89 m Market Cap 544.79 m 1 w DeFi Autumn after Solana Summer? Traders Still Short as Bitcoin Jumps to $48k and Ether to Nearly $3,700 1 mon Bloomberg and Galaxy Digital Launches DeFi Index; SEC Chair Gary Gensler says DeFi is “A Bit of A Misnomer” 4 mon Ethereum Co-founder Proposes Uniswap's UNI to be Used as an Oracle Token
Interestingly, amidst this carnage, DOGE emerged as the winner, which is up 50% in the past 24 hours and over 5% in the past hour. DOGE -1.67% Dogecoin / USD DOGEUSD $ 0.20
$0.00-1.67% Volume 851.04 m Change $0.00 Open $0.20 Circulating 131.47 b Market Cap 26.07 b 5 d Google Searches for Bitcoin Hit Dec 2020 Level, Interest in NFTs Surpass DeFi Significantly and Matched Ethereum Briefly 6 d Lloyds to Auction off Vehicles from Mad Max FURY Road Film, Crypto Accepted 6 d AMC Theaters CEO Is Considering Adding Payment Support for DOGE By Year-End