. Crypto Crash 2024: Bitcoin's Shocking Plunge and the $2 Trillion Market Wipeout - CryptoRounder: Your Source for Latest Bitcoin News, Expert Analysis & Price Predictions

Crypto Crash 2024: Bitcoin’s Shocking Plunge and the $2 Trillion Market Wipeout

The most recent crypto crash statistics reveal that Bitcoin (BTC) has dropped 2.5% against the US dollar in the past 24 hours and declined by 5.8% over the previous week. As of 11 a.m. EDT on Wednesday, Bitcoin was hovering around $57,400 per unit, after reaching an intraday low of $55,602 per coin.

Is the cryptocurrency market stuck?

One of Crypto Dan’s key observations during the ongoing crypto crash is the “Dead Cross” formation on the short- and long-term SOPR (Spent Output Profit Ratio) moving averages. This technical signal suggests more selling pressure than buying pressure, a clear bearish indicator.

Technical analysis indicates that there is going to be more selling pressure than purchasing pressure, which is a bearish indicator. Instead of speculating on potential gains, it implies that traders could be locking in profits.

As Dan pointed out, the trend’s endurance begs the question of whether the market is destined for a lengthier period of consolidation or whether a significant comeback is imminent.

Dan identified the September 18 US Federal Reserve meeting as a possible trigger for the market action going forward since a base rate drop is expected. Rate reductions have historically had a favorable effect on the financial markets, particularly cryptocurrencies.

As the crypto crash continues, a decline in interest rates may lead to an influx of liquidity into riskier assets like Bitcoin and altcoins, potentially sparking a brief rally that offers some relief from the recent months of stagnation.

However, Dan warns that unless there is a significant shift in market conditions, this short-term recovery may not translate into a sustained long-term bullish trend. Investors should remain cautious, as temporary gains might not signal a lasting change in the broader market outlook.

Almost 67,000 Cryptocurrency Traders Sold Their Holdings as Bitcoin Drops to $55,602

Crypto Crash

The price of Bitcoin (BTC) dropped 5.8% this week due to crypto crash, continuing its rough ride. Even still, it is now 13% more expensive than it was on August 4, when it was trading below $55,000.

With a market valuation of $1.11 trillion, bitcoin accounts for 56% of the cryptocurrency industry’s total value. The value of the whole cryptocurrency market fell below $2 trillion on Tuesday night and is currently at $1.98 trillion on Wednesday. This indicates that the broader market was not immune to bitcoin’s decline.

Even if trading had been rather calm before, the volume of transactions in the cryptocurrency industry increased by 36% in the past day. BTC accounted for $33.79 billion of the $70.23 billion that was transacted.

On September 4, 2024, at 10:30 a.m. EDT, when the price of bitcoin was averaging $56,327 globally, a premium caused it to rise to $57,172 per coin on South Korean platforms Upbit and Bithumb. The South Korean won was the sixth most-traded pair with Bitcoin on this specific Wednesday.

Tether (USDT) was the most traded pair; the US dollar, FDUSD, and USDC were the next most traded pairs. During the last day, $169.04 million in cryptocurrency derivatives contracts were liquidated, with $136.81 million of those positions being long.

Of the total liquidations, $36.3 million came from long holdings in Bitcoin, and $28.75 million came from long positions in Ether. According to the statistics, 66,713 dealers faced liquidations between September 3 and September 4, 2024.

When Will There Finally Be a Breakout?

The ongoing crypto crash continues to influence the cryptocurrency market, with macroeconomic issues like inflation and recession fears affecting investor sentiment. Dan points out that these frustrating, low-volatility movements may persist well beyond 2024 if these concerns aren’t addressed.

While a brief increase in value is possible due to optimistic market attitudes following the anticipated U.S. base rate reduction on September 18, significant changes are unlikely without a drastic shift in current conditions. Unless the broader economic landscape improves, these annoying fluctuations are expected to continue into 2024.

Conclusion

While the current state of the cryptocurrency market may seem disheartening, “patience” is key for long-term investors, according to Crypto Dan. He emphasizes that while a quick spike could occur, the broader market trends suggest that a more substantial and sustained recovery is unlikely before 2025.

As the market weathers this crypto crash, investors need to remain focused on long-term strategies rather than short-term fluctuations.

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