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 -6.60% THORChain / USD RUNEUSD $ 16.81
-$1.11-6.60% Volume 149.14 m Change -$1.11 Open $16.81 Circulating 239.9 m Market Cap 4.03 b 3 d Cryptocurrency Related Stocks Tumbling in a Massive Divergence from Crypto Assets 3 w Crypto Market Is Recovering Beautifully, Double-Digit Gains Recorded 3 w Mark Cuban HODLing DOGE for Life, Reports a 550% in Dogecoin Payments for Mavs Merch YFI 17.36% yearn.finance / USD YFIUSD $ 65,833.43
$11,428.6817.36% Volume 1.51 b Change $11,428.68 Open $65,833.43 Circulating 36.63 K Market Cap 2.41 b 3 d Sushi Goes Live on Polygon (MATIC), Andre Cronje Proposes A Curve like Mechanism for it 1 w Revolut to Enable its Users to Withdraw Bitcoin to External Wallets Next Week 1 w Yearn Becomes 2nd Highest DeFi Earnings Protocol with $4.8 Million in Adjusted EBITDA in Q1 2021 NEO -13.79% Neo / USD NEOUSD $ 104.72
-$14.44-13.79% Volume 1.86 b Change -$14.44 Open $104.72 Circulating 70.54 m Market Cap 7.39 b 1 w Due to Increased Demand, Social Trading Platform Firm eToro Now Supports DOGE 3 w Google Search Volume for Cryptocurrency in Turkey Is At An ATH After Payment Ban 3 w Crypto Market Is Recovering Beautifully, Double-Digit Gains Recorded DGB -12.33% DigiByte / USD DGBUSD $ 0.13
-$0.02-12.33% Volume 128.38 m Change -$0.02 Open $0.13 Circulating 14.3 b Market Cap 1.83 b 3 w Crypto Market Is Recovering Beautifully, Double-Digit Gains Recorded 3 mon Rapper Soulja Boy Reveals His Crypto Bags UMA 5.90% UMA / USD UMAUSD $ 27.21
$1.615.90% Volume 210.74 m Change $1.61 Open $27.21 Circulating 60.08 m Market Cap 1.63 b 3 w Crypto Market Is Recovering Beautifully, Double-Digit Gains Recorded 3 w Citibank Covers DeFi, says Open Financial Platform Enables 'Greater Innovation and Competition' 1 mon Revolut Adds 11 New 'Hot' Cryptos Including DeFi Tokens for UK and EU Users
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 -1.44% Dogecoin / USD DOGEUSD $ 0.52
-$0.01-1.44% Volume 19.31 b Change -$0.01 Open $0.52 Circulating 129.55 b Market Cap 67.63 b 16 h SHIB Token Is Sending Ethereum Gas Prices Higher 19 h Dogecoin (DOGE) Literally Going to the Moon with Elon Musk’s SpaceX 1 d Coinbase and Robinhood Continue to be the Most Popular Free Apps in the US