The cryptocurrency market has recorded its worst day in recent months as the majority of cryptocurrencies have depreciated massively. In the crypto market turmoil, it was the biggest day of liquidation in 15 months, with over $2.5 billion in leveraged positions liquidated in the past 24 hours. Its total market cap has dropped by nearly 20%, with a loss of over $500 billion in just a few hours.
The emotionally-reversing crypto market crash is thought to have been triggered by a number of factors. Fears created by the new COVID variant Omnicorn in the traditional market seem to be the primary reason. Market analysts also pointed to leveraged positions on exchanges and high funding rates as other factors influencing the crypto market crash. Crypto funding rates have turned negative again and many believe this is a bullish sign even though the majority of the market is trading in the red.
Many community members also noted the recent push for regulations in the US. As we previously reported, the US Congress will hold a session on December 8 that will be attended by CEOs from top crypto platforms such as Coinbase, FTX and others.
Can The Crypto Market Survive The Current Downtrend?
After an extremely bullish October, crypto experts predicted a bullish quarter in the last quarter, but the beginning of December suggests otherwise. The Bitcoin Fear and Greed Index has dropped to the “Extreme Fear” level after a month and a half. Although the crypto market is currently bearish, market analysts believe that we have not yet reached a market peak.
Popular crypto analyst Plan B with a $100,000 Bitcoin price prediction shared his 2017 bull cycle chart to signal that the crypto market will dampen the impact of the loss before the bulls win back.
For context, 2017 bull market pic.twitter.com/W16gCwTVve
— PlanB (@100trillionUSD) 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.