Bitcoin collapse - a painful correction or the end of the rally?
The crypto market experienced a massive drop on Tuesday. Bitcoin was down to $45,000, losing $10,000 (18%) in the moment from the beginning of the day.
According to the service bybt, during the last day in the cryptocurrency market were liquidated positions for $5.77 billion, of which bitcoin accounted for $2.5 billion. this is the largest volume of liquidations in a single day on the cryptocurrency market, according to available statistics, writes ttrcoin.
All this helped cool down the crypto futures market. Open interest or the volume of active positions in bitcoin futures fell by 15% to $12 billion in 24 hours, and in the market for most altcoins the figure fell by 25-40%.
The first cryptocurrency is inefficient for transactions because of its highly speculative nature and the large amounts of energy used by its network, U.S. Treasury Secretary Janet Yellen said Monday.
Some members of the crypto community attribute the current market dynamics to the "Musk effect. Recall that the head of Tesla recently disappointed many crypto market participants with his unexpected skeptical statements on bitcoin. Thus, on February 20, he said that he considers BTC and overvalued.
Microsoft co-founder Bill Gates urged potential investors not to take the example of Tesla, which invested $1.5 billion in bitcoin.
"I'm not overly optimistic about bitcoin, and my general thought is that if you have less money than Ilon Musk, you should probably be more careful," Gates said.
"Painful market correction or the end of the rally? In the near future, the U.S. monetary authorities' comments will have a serious impact on the prospects of the crypto market. If the economy continues to receive stimulus not only in words, but also in deeds, the situation with high-risk assets may stabilize for a while," - notes the team of analysts of FxPro.