The Bitcoin (BTC), and wider cryptocurrency, experienced an additional wave of overnight selling that intensified on December 4, as Altcoin tokens fell to multi-month lows. The USD/BTC price fell below $50,000 in the latest wave of selling pressure.
The BTC/USDC trading pair on Huobi Global suffered a more severe drawdown. It fell to $28,800 on December 4. Collin Wu noted that the BTC/USDC trading pairs in Huobi Global fell to $28801.87 after it dropped sharply. This was a sign of insufficient depth.
Ethereum (ETH), which suffered a nearly 15% drop in its price, crashed to $3,575 on Oct. 14th. Altcoin suffered a severe sell-off as most of the top 100 coins experienced losses between 15% to 30% at press time.
The Sandbox (SAND), which fell almost 20% to a low price of $4, and Dogecoin(DOGE), which lost nearly 22% to reach a low value of $0.122, both suffered a sharp drop in its value. Terra (LUNA), which hit an all-time high of $74.15 a day earlier, has fallen 17% and trades below $60 as of this writing.
The Cause and What Experts Say
Investors are worried about the emergence of the variant and the Federal Reserve’s hawkish comments. Charlie Munger, a Billionaire investor, made some sour comments as well. He made a comparison between the price action in crypto markets and the dot-com bubble era. According to reports, the 97-year old vice chairman of Berkshire Hathaway said that cryptocurrencies should have never been invented and that he admires China for doing away with them.
Bitcoin recovered to $47,000 within a short rebound after investors bought the dip. Nayib Bukuele, El Salvadoran President, tweeted that he had purchased 150 coins. “El Salvador just bought it!” 150 coins for an average USD price $48,670 Justin Sun, Tron CEO stated that he had followed El Salvador to buy 100 bitcoins at an average of 47,627.03. Many Altcoins followed the lead as traders rush to purchase the dip.
Santiment points out that prices are rebounding with the largest dip interest buy in 3 months. “Bitcoin dropped all the way down to $43.5k an hour ago along with Ethereum falling to $3.54k. Prices are rebounding with the largest dip interest buy in three months. The story should be told by renewed covid concerns from larger stakeholders.
Chinese influencer Collin Wu said “At the moment, the futures funding rates of major exchanges are generally less than 0.1% and most of them even negative which indicates that the market has strong bearish feelings” Noting also that today’s falls saw the largest liquidation amount since September 20th, a figure of $1.1 billion.
Recall that Bitcoin reached highs in October at $66,999 after dropping in September. This outcome can be expected if the events continue as they are.