The cryptocurrency market witnessed one of the most brutal corrections of 2021 and ‘crashed’ in a very short period of time, as assets in the market were thought to be starting to rise after a correction phase.
Bitcoin (BTC) While recording a drop of around $43,000, Ethereum (ETH) It dropped to around $3,500. However, while these dips occur, some investors are looking for opportunities to ‘buy at the bottom’. As On-Chain data provider Santiment reports:
“Bitcoin dropped as low as $43,500 about an hour ago and Ethereum dropped to $3540. However, prices jumped with the biggest #buythedip rate hike in three months. Renewed COVID-19 concerns among larger stakeholders are an element that completes the story.”
El Salvador’s President, Nayyib Bukele, wasted no time buying in the Bitcoin crash. He announced that he bought 150 Bitcoins at about $ 48,700.
Omicron Fear Captures Global Markets
The recent spread of the COVID-19 variant, dubbed Omicron, has cast doubt on economic reopening around the world. This put the global market under great pressure, forcing investors to turn to safe-haven assets. Vijay Ayyar, head of crypto exchange Luno and Asia Pacific in Singapore, noted:
“Markets, with cases emerging in many countries, all the uncertainty around Omicron has hit the markets even more. It is difficult at the moment to say what this means for economies and markets and hence the uncertainty.”
As a result of today’s price correction, more than $2 billion was liquidated from the broader crypto markets in a matter of hours.
$2.2b liquidated in 12h.
Bitcoin OI plunged 25% pic.twitter.com/1QFCeX1rMp
— Lex Moskovski 🐙 (@mskvsk) December 4, 2021
Bitcoin futures Open Interest (OI) also dropped significantly, with a staggering $3.3 billion closing in just an hour. This was about 17% of all open contracts.
The cooling of Bitcoin open position could be healthy, leading to a recovery in price. Checkmate.btc, lead chain analyst at Glassnode, expects the market to recover and advises investors not to panic at this point.
By the way –> hang in there.
Don’t get shaken out here, the damage is already done, and the market WILL recover from today’s red candle in due course.
Sit tight, you got that!#Bitcoin https://t.co/d3DbTutsXR
— _Checkmate.btc 🔑⚡🦬🌋checkonchain.com🌋 (@_Checkmatey_) December 4, 2021
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.