Huge losses have hit the global crypto market as a significant number of investors in the crypto market have recorded losses amid the sudden drop seen in many crypto assets across the market spectrum. For the day, about 247,084 investors had their accounts worth $1.74 billion liquidated. The largest single liquidation order happened on Huobi-DOT valued at $8.51 million.
Ethereum at the time of writing this report broke below its all-important $4000 price levels, trading at $3,888.57 on the FTX exchange with a daily trading volume of $66 billion. Ethereum is down 5.44% for the day. However, it is still the second most valuable crypto with a market value of about $450.4 billion.
The flagship crypto lost as much as $3,000 within some hours amid record selling pressures in the cryptoverse. Bitcoin traded around the $55,000 price levels with a daily trading volume of $73 billion. Bitcoin is down 6.98% for the day. The reason for such a violent dump in many crypto assets wasn’t immediately clear, but it is important to keep in mind that Crypto assets are notoriously volatile.
Market commentators have long fretted that a stimulus-supported economy has fuelled these crypto assets to prices that defy the thinking of mainstream financial analysis, but such fears have been unable to pause their bullish trend.
Recall that some days ago the Bank of England Governor, Andrew Bailey disclosed his bias on Crypto-assets saying they have no intrinsic value and investors in these assets should be prepared to lose all their funds.
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According to Baily “That doesn’t mean to say people don’t put a value on them, because they can have extrinsic value. But they have no intrinsic value. I’m going to say this very bluntly again, buy them only if you’re prepared to lose all your money.”
Some crypto critics envisage the crypto market is in a bubble waiting to burst, on the bearish sentiments that there are little fundamentals behind many of these digital assets.
Leading Crypto-assets like Polkadot, XRP, Cardano Litecoin were down by more than 10% while dogecoin recorded losses of about 20% of its value.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry