What Happened? Read Here ⚠️ for BINANCE:BTCUSDT by ShawnMCR

Massive sell volumes, Massive liquidations, all in less than an hour. But why?

CryptoTicker. io explained three reasons for this crash:

1- JP Morgan issued a Bad Memo to its investors

JP Morgan warned its investors 1 day prior to the crash about buying altcoins during this bull run. They claimed that retail traders were hyping up prices during fundamental advancements in the technology (NFTs, scalable blockchains…). This note created a negative sentiment in the crypto sphere, prompting a heavy sell-off.

2- El Salvador Announced a Bad Start with its crypto integration
The cryptocurrency market started taking a hit as El Salvador’s wallet experienced technical difficulties within hours of its debut. This forced President Bukele to announce that they would temporarily “go offline”. This bad start in their crypto integration scared investors and initiated a sell-off, which translated into a snowball effect on the entire market. Negative news and strong selling pressures have very bad effects on cryptos, especially because of their high volatility .

3- A Price Adjustment was bound to happen
The crypto market rallied for an extended period now with no signs of any retracement in prices. This extended uptrend is definitely scary, especially when prices rise by more than 50% in less than 1 month. Green candles can be seen for most cryptos consecutively. Coupled with bad news, this ticking bomb would definitely explode once profit-takers enter the selling game”

Also as says:

“It follows recent crashes brought on by Tesla making a u-turn on accepting Bitcoin as payment for its products and China clamping down on initial coin offerings, block exchanges and warned against speculative trading.

A further blow was dealt when China ordered Bitcoin mining in its Sichuan province to shut down completely and furthermore told banks to stop supporting crypto transactions, in a latest wave of restrictions on cryptos.

China’s crackdown on cryptos comes days after Musk’s shock announcement.

Musk’s decision signifies a sharp u-turn for Tesla who only started accepting Bitcoin as payment for its services in February 2021.

It came after the electric car company bought $1.5b (£1.06b) of Bitcoin shares, which in turn sent the market price of both the crypto and Tesla soaring.

The billionaire entrepreneur said: “We are concerned about rapidly increasing use of fossil fuel for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”

Musk reaffirmed his belief that cryptocurrency has a “promising future” but that it “cannot come at great cost to the environment”, in his Twitter post.

Musk has been a long-time advocate of cryptocurrencies and the Tesla decision was felt across the market, with other digital tokens going down in price.”

In the past 24 hours, most cryptocurrencies are in the red. The market as a whole lost more than 10%. The top losers are Filecoin (FIL), MDeX ( MDEX ), and Ethereum Classic (ETC) all losing around 20%. On the other hand, we can notice top gainers on such a red day like Near Protocol (NEAR) and Solana (SOL) making 22% and 11% respectively.

1- Bitcoin ( BTC ) : – 9.2 %

2- Ether (ETH) : – 12.7 %

3- Cardano (ADA) : – 16.6 %

4- Binance Coin (BNB): – 14.7 %

5- Tether (USDT) : 0 %

6- Ripple (XRP) : – 21.35 %

7- Solana (SOL) : + 11.63 %

8- Dogecoin (DOGE) : – 17.83 %

8- USD Coin ( USDC ) : + 0 %

9- Polkadot (DOT): – 19.20 %

What do you think caused this crash? What happened to your positions? Comment below and share it with us.

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