Last month, in the middle of the collapse in the crypto market, the total crypto market value fell from $ 3.7 trillion to $ 2.8 trillion. Bitcoin faced harsh losses. Cryptoquant CEO, which Young Ju maintains optimism and claims that the BTC is not likely to fall below $ 77,000. Ethereum leads to the correction of the Altcoin market, which erodes all gains after the US elections.
The collapse of Bitcoin and subcoins deletes $ 900 billion
Since US President Donald Trump launched the trade war on January 20, the collapse in the crypto market has led to the deletion of more than $ 900 billion dollars in a slightly longer than a month. Since Trump’s office, the total crypto market value has fell from $ 3.7 trillion to $ 2.8 trillion. In the monthly graph, the price of Bitcoin fell more than 21 %after being rejected at the levels of 106 thousand dollars.
After the asset lost significant support of $ 95 thousand, BTC losses became more intensified. After Trump announced the trade wars with Europe, Canada and Europe recently, Bitcoin acted as in the graph below.
Source: Kobeissi LetterGold is the center of attention to Bitcoin
Recent developments show that the BTC is exposed to uncertainties in the market and that the yellow metal, which tends to rise, moves in the opposite direction. During the trade war, the price of gold continued to rise and increased its earnings from New Year to about 10 %.
Gold has recovered its position as a preferred global hedge in the uncertainty environment. Last week, gold ETFs purchased an impressive amount of metal of 52 tons and made the highest weekly entry since July 2020. In the last 12 months, gold prices have increased by more than 50 %and have reached the best annual performance of the last decade.
Source: The Kobeissi LetterHow long can the Bitcoin price fall?
Crypto Analyst Justin Bennett suggests that Bitcoin may be on the way to close the CME gap in November and can potentially align with the trend line of 2023 September. In an recent article, Bennett expressed his doubts about Bitcoin’s ability to protect his current levels. In this context, Bennett said, “To avoid Bitcoin’s appearance, he has to make a miraculous closing over $ 92,000 in February. The possibilities do not look good, ”he said.
Source: Justin BennetArthur Hayes, CEO of Bitmex, said, uz We are making lower bottoms in this existing wave. I wanted to add a risk this morning, but when I look at this price movement, I think we have another violent daggama below $ 80,000 during the weekend, then cricket insects. ” shared his comment.
On the other hand, Cryptoquant CEO still believes that the Bitcoin Taurus run has not ended, and that the price of Bitcoin will fall below $ 77,000 in the collapse of this crypto market.
Ethereum leads the decline in subcoins!
Ethereum fell by about 10 %today and fell to $ 2,100. Thus, he pioneered the collapse in the Altcoin market. With today’s decline, Eth completely erased his rally after the election. Ethereum has declined by about 50 %since the summit it reached after the June 24 elections. During the article, the price of ETH was traded for $ 2,123 with a decrease of 9.8 %.
Source: TradingViewIn addition to ETH, some of the best subcoins depreciated between 8-10 %. The XRP price fell by 9 %today to $ 2.0. Solana (Left) also decreased to $ 130 with a 6.5 %drop, while Dgecoin (Dogge), Cardano (island) lost significant support levels by seeing a similar size.
In the collapse of today’s crypto market, the overall crypto market liquidation increased by Coings data to over $ 860 million. 707 million dollars of total liquidations alone consist of long liquidations.
Bitcoin and Aktcoin market face a large liquidity crisis
The strict liquidity conditions in the market were the main reason behind the recent harsh decline in the crypto market. The Kobeissi Letter said that the total monthly market correction in the absence of liquidity was eroded only in the last 60 hours of $ 760 billion.
Source: The Kobeissi LetterDuring ongoing commercial tensions, most of the global liquidity returns to the US dollar. Usually seen as “the safest risky asset”, USD benefits its reputation as one of the most stable currencies in the world. Thus, USD absorbs liquidity in crypto and other global markets.
