Bitcoin and other cryptocurrencies had a nice weekend before the markets quickly turned red.
Summary of the News
- The cryptocurrency markets had a very positive weekend, thanks to Bitcoin’s rise to over $ 60K.
- However, almost all projects fell by around 3% this morning.
- A number of factors are impacting the price of crypto, including the crypto ban spoken in India.
Crypto has had another crazy weekend as it did throughout the year 2021. Bitcoin earnings climbed to new heights before aggressively reversing.
Bitcoin Hits All-Time Highs Over The Weekend
On Sunday, Bitcoin, the world’s largest cryptocurrency, reached its all-time high of $ 61,700.
But when Monday morning came, a price decline at almost the same pace began to be noticed. There was a $ 3,000 drop in bitcoin price, according to Nomics; this represents a decline of 4.9% in the last 24 hours. Prices dropped to $ 1.74 trillion for global market capitalization, which rose above $ 1.82 trillion over the weekend, resulting in a loss of about $ 100 billion.
The situation was no different for many of the biggest cryptocurrencies in the world. Ethereum has lost 4.1% in the past 24 hours, following a trajectory similar to Bitcoin’s rise and fall.
There was a loss of 4% in the medium term – projects valued at $ 10-40 billion. Cardano, XRP and Litecoin fell 4%; Chainlink fell more than 5%, Uniswap 7% and Bitcoin Cash more than 8%.
You will need to go beyond the top 20 to find any cryptocurrency in green. Hex and Algorand rose over 9%, while VeChain rose over 7.5%.
Why Are Crypto Markets Falling?
So what’s so scaring the markets? Bitcoin and the wider crypto market tend to climb aggressively before retracting quickly. This can be attributed to several factors. The first is the exchange entry and exit.
Large HODLers can cause fluctuations in the market. These fluctuations are then reinforced by bots designed to trade based on changing market conditions.
Also, Asian stock markets have had a tough session today due to growing concerns that the Chinese government will have to keep the markets flowing. Treasury returns in the US also added strength to the narrative that the US economy is overheating.
In such a situation, inflation will rise, this will prevent borrowing and suppress the post-COVID recovery. All of these affect investor sentiment. The more pessimistic they are, the less likely they are to invest money in exotic and volatile assets like Bitcoin.
Also, another important factor can be noted as India’s plans to ban cryptocurrency. According to Statista, India is the 10th largest market for Bitcoin trading volume. A possible ban attempt is likely to have a significant impact on cryptocurrency prices.