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On Wednesday, the cryptocurrency market experienced a massive selloff, as bitcoins exceeded the new lows of the year and major investment companies recorded double-digit losses across the board. Bitcoin liquidity recorded the highest percentage decline, effectively canceling the gains made on the eve of the hard front event on Thursday.
Market update
The cryptocurrencies have renounced a combined value of $ 25 billion in the last 24 hours, while markets approached the new lows of the year. The selloff intensified during the late morning session, bringing the limit of the encrypted market to a minimum of $ 187 billion. At the time of writing, the cryptoassets were worth a total of $ 188.4 billion, according to CoinMarketCap.
Trade volumes increased 33% to $ 17.6 billion as investors rushed to liquidate their positions amid the selloff. All the major stock exchanges recorded a sharp increase in daily turnover, with volumes on Huobi, Bitfinex and LBank which increased by 100% or more on the last day.
The price of Bitcoin has fallen more than 10% on Coinbase to reach a minimum of $ 5,530. At the time of writing, BTC / USD was worth $ 5.655.
Liquidity in Bitcoin, the fourth largest cryptocurrency by market capitalization, has yielded a whopping 18.1% to reach $ 433. In doing so, it has completely reversed all the gains made over the past two weeks.
Ethereum fell 12.1% to $ 184, XRP lost 11.9% to $ 0.4576 and Stellar XLM fell 12% to $ 0.2303. With the exception of USDT, a dollar-backed stablecoin, all top-20 criptoassets lost 7% or more on Wednesday.
The following photograph, courtesy of CoinMarketCap, highlights the amount of the selloff.
Bitcoin dominance is growing
Although the bitcoin was not spared from the last route, its share in the overall market rose above 54% on Wednesday, a sign that the remaining capital was consolidating into the largest asset warehouse. The Bitcoin dominance rate has since fallen to around 53.1%.
Prolonged volatility periods for altcoins and tokens have provided bitcoins with a supporting pin since the bear market began at the start of this year. This has been shown more recently by narrower price ranges and strong declines in volatility for the major digital currency. As recently reported by Hacked, the bitcoin volatility index dropped this week to its lowest level in over two years.
Although there has not been an immediate catalyst for the rapid decline in market prices, the anxiety about the future of bitcoin money is probably included in the equation. The primary implementation of the protocol, called bitcoin cash ABC, was supported by leading industry players prior to Thursday's hard fork. However, recent data show that the hash rate of the network has been favorable to bitcoin SV, a concurrent protocol driven by Craig Steven Wright, Calvin Ayre and some very large mining pools. This information may have contributed to a sharp rise in SV futures prices on Wednesday.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. It holds investment positions in the currencies, but does not carry out trading activities in the short term or daily.
Featured image courtesy of Shutterstock.
