Bitcoin Trying to Stage a Comeback From Saturday’s Plunge

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Bitcoin tried to bounce back on Sunday, but bounced back as quickly as they came in afternoon trading.

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while before 1.99% Bitcoin fell 1.3% to around $48,506 at 2:32 a.m. Eastern Time, to $49,321.65, as tracked by crypto news website CoinDesk.

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Bitcoin’s opening-hours drop on Saturday built on losses it began a month earlier and was told by the Federal Reserve that monetary support for the market would soon end. CoinDesk said that on Saturday, bitcoin was down 20% before recovering some, causing it to lose around $10,000 an hour.

Bitcoin, the largest cryptocurrency by market cap, fell to $42,000 at midnight Eastern Time on Saturday before recovering. Including that decline, its value has fallen by about 29% since its all-time high on November 8, around the same time that speculative stocks began to decline.

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The losses appear related to uncertainties over the Omicron version of the coronavirus and Fed Chair Jerome Powell’s remarks to Congress last week that the central bank would wind up its pandemic bond-buying program in response to inflation. The stock market also retreated.

Cryptocurrencies are much more volatile than stocks or government-issued currencies. Other cryptocurrencies also declined sharply at the start of the weekend, in a sign that investors are turning away from riskier bets.

Ether, the second largest cryptocurrency, also fell over 15%, but had erased that loss on Sunday to trade slightly higher. Other widely traded cryptocurrencies, including Solana, Dogecoin and Shiba Inu Coin, were trading lower.

According to CoinMarketCap.com, Saturday’s drop pulled the total market cap of the crypto universe from about $400 billion to nearly $2 trillion, before recovering to around $2.2 trillion, Businesshala reported.

NYDIG, a technology and financial services firm dedicated to bitcoin, estimated on Saturday that $1.1 billion of leveraged bitcoin positions and $2.5 billion of crypto leveraged positions (including bitcoin) were liquidated in the past 24 hours, the highest since September. represents the largest hypothetical liquidation of the 7. 7.

The NYDIG also suggested that it was seeing positive trends for bitcoin and crypto: “At our desks, we’ve seen a two-way flow today, with 84% of inflows being buy at our trading desks, tax loss harvesting trades.” Except,” NYDIG wrote on Saturday.

Another factor that may have accelerated bitcoin sales is the opening up of heavily leveraged crypto derivatives, says Noel Acheson, Head of Market Insights at Crypto Genesis Global Trading, said Wall Street Journal. He pointed to a large sell order that may have triggered a margin call and liquidation for investors.

El Salvador’s President Nayib Bukele announced on Saturday that his country had “bought the dip””, breaking 150 coins for an average of $48,670 each. He written later That the country had missed “7 minutes” below, followed by a laughing emoji. In September El Salvador became the first country to adopt bitcoin as a National currency,

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