adnancypto049 (OP)
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April 20, 2021, 03:39:18 AM |
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Hi, I am confused about the sudden dump of cryptocurrencies. can anyone explain that why this happen on Sunday?
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jackg
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April 20, 2021, 03:46:59 AM |
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There were two main theories I saw. One was that mining rates dropped due to flooding in China which temporarily took out ~10-30% of the total hashrate.
The second reason was due to a funding rate indicator on leveraged positions that said there were a lot of longs open and a high funding rate for shorts (meaning short term shorts were paying people to open them and leave them open). I assume that could then build into a bias if the market starts to get a bit stagnant.
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mk4
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April 20, 2021, 05:47:08 AM |
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So what if it's Sunday though? The cryptocurrency markets are open 24/7, so while some days statistically have a bit less volatility than other days, it definitely doesn't necessarily mean that such so called 'crashes' can't happen due to whatever reason.
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Argoo
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April 20, 2021, 06:36:48 AM |
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I was also interested in this issue, read and heard many different versions of what happened. This is the statement of the US Treasury Department on its intention to take harsh measures against financial institutions for money laundering using cryptocurrencies, and the introduction of US sanctions against 28 cryptocurrency bitcoin addresses, which are accused of involvement in interference in last year's presidential election, and a statement by the Turkish government to ban use cryptocurrency as a means of payment, and other similar news. There are also two more possible versions of what happened that I have not heard of. There can be many such possible reasons. It is unlikely that we will be able to find out the true reason. It may also be that all of them, to one degree or another, influenced the situation with the fall of the cryptocurrency market.
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fiulpro
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So what if it's Sunday though? The cryptocurrency markets are open 24/7, so while some days statistically have a bit less volatility than other days, it definitely doesn't necessarily mean that such so called 'crashes' can't happen due to whatever reason.
Yes it's not some stock market where you might have to wait in line for days and then think about what's going on wrong there. It is not controlled by any governing body so there are no limitations. If we do follow the Coinbase they are blaming it to force liquidations. Here is a quote from there : The crypto futures market saw the highest nymber of liquidations in history on Sunday as the sudden bitcoin (BTC, -5.11%) price pullback caught overleveraged traders off guard.
Exchanges offering crypto futures liquidated $10 billion worth of positions on Sunday, toppling the previous market-wide record of $5.77 billion registered on Feb. 23, according to data provider Bybt https://www.coindesk.com/crypto-futures-saw-record-10b-worth-of-liquidations-on-sunday That could have been your answer and other than that I do think we can just be in a stage of some price correction . Plus it's good that people are buying excessively during this dip and the price is not going down excessively. Therefore that's a plus point for the market for sure.
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franky1
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April 20, 2021, 07:20:13 AM |
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dont think of it as a 'crash'. because the month average has been $56k anyway
the $64k was a temporary blip. not sustainable. a $53k-$56k is a normal flow average for the last month. and not something to panic/worry/question
but now we know the market has tested $62k twice in the last 3 months. it shows that its capable of going up in the midterm future. but just not ready yet to go up and stay up
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I DO NOT TRADE OR ACT AS ESCROW ON THIS FORUM EVER. Please do your own research & respect what is written here as both opinion & information gleaned from experience. many people replying with insults but no on-topic content substance, automatically are 'facepalmed' and yawned at
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semobo
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April 20, 2021, 11:00:49 AM |
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Bitcoin network clogged could be one of the reason why people are rushing to sell their coins, but the network clog happened due to the electricity outage for the mining farms in China due to some kind of accident and which is expected to resume in couple of weeks by that time only we can see the transaction fee to be lowered and so called people will start using bitcoins again for any purposes other than holding.
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Taskford
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April 20, 2021, 11:29:28 AM |
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Hi, I am confused about the sudden dump of cryptocurrencies. can anyone explain that why this happen on Sunday?
What make you think that way? Maybe you think massive dump would possibly came due to the current huge dumping activities happening this week? Maybe that's not possible to be seen since the bitcoin price is in goo figures right now it go stable at 55k rate so no wonder it could bounce back again since we provably at this rate the whales will start to accumulate since this is the cheapest price what bitcoin gotten for the past following weeks since Month April starts if I'm not wrong.
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tomahawk9
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April 20, 2021, 12:32:53 PM |
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Bitcoin network clogged could be one of the reason why people are rushing to sell their coins i don't think that's ever been the reason behind a sell-off or flash crash. If anything it is an indication that something else happened in the cryptospace which triggered a sudden spike in tx's like maybe massive swing in the price, or some big news in the cryptosphere, or like an another user mentioned, a drop in the hashrate.
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Nhazwrath
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April 20, 2021, 01:46:52 PM |
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I have a single s9 asic I bought to learn on which has pulled in far more value then ever expected due to the big jump in BTC value.
the total number of miners in the pool i am utilizing when i joined it was at just under 100,000. ow it hovers at 150,000 the number of miners in that pool on Sunday didn't drop. I do not know how to determine where the machines are of course. but its Slushpool one of the oldest.
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mezzaluna
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April 20, 2021, 01:49:21 PM |
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There were two main theories I saw. One was that mining rates dropped due to flooding in China which temporarily took out ~10-30% of the total hashrate.
The second reason was due to a funding rate indicator on leveraged positions that said there were a lot of longs open and a high funding rate for shorts (meaning short term shorts were paying people to open them and leave them open). I assume that could then build into a bias if the market starts to get a bit stagnant.
Another reason that I saw was it was kinda called a correction. The guy who did the Technical Analysis stated that its basically something that was bound to happen to put its value near to its absolute value and I kinda believe that the Cryptocurrencies currents value are good and nice since its kinda getting that stable line in every chart that we are seeing and most bullish coins right now are either new coins or old coins that suddenly have their community shilling for them. Another reason was a lot of people were FOMOing on certain coins that pumped before the dumped happen and I believe most of them are newbies so its just scary for them to lose so much money within this industry.
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Snappycoco
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April 20, 2021, 03:08:49 PM |
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It is clearly due to correction. The run wasn't supported enough and leads to sudden dump but I guess it would be long enough before it bounce back.
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oHnK
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April 20, 2021, 03:49:51 PM |
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I can see in a simple way that the market is currently undergoing a correction after a long bullish stage causing my social media accounts to fill up with people showing off their crypto portfolios. I consider this a common thing in the world of investing both in the short term and the long term. I'm sure there will be a new draw point in crypto after its insane bulls. I was quite shocked to see the correction deep enough.
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BrewMaster
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April 20, 2021, 04:43:00 PM |
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if you check any of the previous corrections you can see that they always look the same and most of the times the situation in the market is also the same. for example this last correction was a small 10% correction which is a very common correction that takes place each time price rises too high too fast and then fails to break the next resistance level so it falls down a little before it starts climbing back up again.
with this recent correction we had an incident about the hashrate that helped with spread of panic among weak hands who are always too quick to panic dump their bit coins. so the drop was sudden and some newcomers think it was a "crash" while it was a simple correction.
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There is a FOMO brewing...
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el kaka22
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April 20, 2021, 04:52:37 PM |
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The talk around the crypto community is that it might have been because of USDT borrowers, they ended up putting money in and they borrowed bitcoin by owing USDT to binance. When the price had a small fall, that resulted with some being liquidated to pay their debt, and that caused it to go down even more, and it created a rippling effect that caused it to crash.
We can't know for sure, but I believe that is a data we can back it up, maybe not all the crash was because of it, let's face it there were a lot of people who panic sold their coins as well, but that is still just a portion of it. When you have a crash like this, it is not really about just one thing, it is usually about many things, that is why I believe it could have been many things contributing to make it go down this much, but it looks fine now and will probably recover.
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mu_enrico
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April 20, 2021, 04:55:03 PM |
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Profit taking, after traders make some money, they will buy again and the cycle continues. So if you have a friend who is an experienced trader, you will have a pretty good chance of a free meal. ![Wink](https://bitcointalk.org/Smileys/default/wink.gif) The horror would be if the price dump once more. Traders who recently did a long position on BTC would get shaky.
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pixie85
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April 20, 2021, 06:37:06 PM |
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I see that as a healthy correction after reaching a new high.
When we first approached 60 thousand we also had a similar correction, then recovered and hit a new high. This correction is really bullish since we did not have a -50% correction followed by a dead cat bounce like in 2013 and 2018.
Like others said the main reason is profit taking and it coincided with some rumors of a bitcoin ban in Turkey which did not help with a swift recovery.
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mersal
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April 20, 2021, 07:50:34 PM |
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Like others said the main reason is profit taking and it coincided with some rumors of a bitcoin ban in Turkey which did not help with a swift recovery.
This is not a rumour but wrong information, the government didn't ban the bitcoin Turskish central bank did and they don't have huge influence in the crypto market for this price correction. And the exact reason is China's mining farm so let's imagine what will happen if miners stopped working all of a sudden the price could drop but once they resume to be available then everything will become normal.
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The Sceptical Chymist
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April 20, 2021, 07:57:06 PM |
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This is the statement of the US Treasury Department on its intention to take harsh measures against financial institutions for money laundering using cryptocurrencies, and the introduction of US sanctions against 28 cryptocurrency bitcoin addresses, which are accused of involvement in interference in last year's presidential election, and a statement by the Turkish government to ban use cryptocurrency as a means of payment, and other similar news.
Huh. I hadn't heard about any of that--and I probably should start reading some of the crypto news sites regularly instead of relying on members here to post about something. But whatever; I'm not sure any of the above had anything to do with the price drop we saw over the weekend. JackG's explanation seems to make more sense, although whenever I see bitcoin drop 10% or so over the course of a day or two, I usually attribute it to traders selling bitcoin and taking their profits. OP probably hasn't been watching the bitcoin market for a long time, because if he had been he likely would not have asked this question. Bitcoin has been far more volatile than it was this weekend, and a lot of times there's absolutely no explanation for the price movement. It's all about investor sentiment--the demand portion of the supply & demand curve. Sometimes people just sell a lot of bitcoin when there aren't enough buy orders to keep the price afloat and what happens? Bitcoin drops. I've learned to just accept the fact that bitcoin is crazy volatile and very unpredictable. That's what makes it fun!
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hatshepsut93
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April 20, 2021, 08:14:39 PM |
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I see that as a healthy correction after reaching a new high.
When we first approached 60 thousand we also had a similar correction, then recovered and hit a new high. This correction is really bullish since we did not have a -50% correction followed by a dead cat bounce like in 2013 and 2018.
Like others said the main reason is profit taking and it coincided with some rumors of a bitcoin ban in Turkey which did not help with a swift recovery.
It was a correction and delevererging of the market, but it's also pretty bad that the new top is only $3,000 higher than the previous one: $61,000 -> 64,000. If you zoom out the chart, it's evident that the market slowed down by a lot, we're stuck near $60,000 for two months already.
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