Bitcoin Opens Down After 20% Sale, $430 Billion Evaporated And More Issues That Will Move Today’s Crypto Market

O bitcoin (BTC) The week opens in red after the weekend sell-off that caused a drop of more than 20% in the cryptocurrency’s price. It was the biggest drop since May of this year, when bitcoin dropped nearly 27% in one day, from over $43,000 to below $32,000.

In the early hours of Saturday (4), the price of the digital asset rose from around $53,200 to nearly $42,600 at some brokerages in less than three hours. Since then, the coin hasn’t dropped more than $46,000, but it hasn’t managed to rise above $49,500 either. At 7:13 am today, it was trading at $47,604, down 3.2% over the past 24 hours as investors await the direction of US stock trading.

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The downturn has rocked other cryptocurrencies, called altcoins. At least 20 out of the 100 with the highest capitalization are down at least 30% for the week. The massive sell-off caused the cryptocurrency to collectively lose more than $430 billion in market capitalization, bringing it back to $2.33 trillion today.

Kadena (KDA), for example, the cryptocurrency developed by former JPMorgan executives, has fallen more than 40% since Friday. Also, harmony (one), graph (GR), THORChain (employment) and gala (expensive), which was The biggest highlight is November with an increase of almost 600%, between 30% and 40% during the weekend.

Among the top ten rankings in terms of capitalization, the Earth that goes down the most at the moment is Earth (Luna) which yields about 20%. Now Solana (Sol(Issam Polkadot)Point) runs at roughly negative 9%, to $180 and $25.67, respectively.

Experts do not guarantee the settlement of the settlement. According to analysis house CryptoQuant, although retail investors are not dumping their assets, large bitcoin holders (whales) continue to deposit at brokers, in a move that signals continued profit-taking in the short term.

There is no consensus among experts on the reasons for the drop, but analysts agree that the reasons are related to a combination of factors from traditional markets combined with specific conditions in the unregulated cryptocurrency market.

One possibility is that the scenario is the result of a global risk aversion movement that has also impacted stock exchanges, amid fears of new shutdowns caused by the omicron variable, combined with high leverage in crypto-derivatives, especially in perpetual contracts, which aims to Short term business with up to 100x multiplication of positions using cryptocurrency rentals.

At the end of November, analysis house Arcane Research had already warned of an increase in open interest even amid lower prices.

“Bitcoin open interest has been above 365,000 BTC for more than a month,” the analyst wrote. “It is not uncommon to see such a high amount being held for a long time. This may indicate that the market is saturated with leverage.”

An estimated $1 billion in long positions were liquidated as bitcoin and other digital assets plummeted on Saturday night. Since then, the interest rates charged by brokers for cryptocurrency rentals have remained negative, indicating little interest in opening new trades.

On the other hand, the sell-off may also have been prompted by fears of more restrictive legislation in the US after the current head of the US Securities and Exchange Commission (SEC), Gary Gensler, met the former head of the agency. , Jay Clayton at an event in New York. Both agreed that, with the exception of Bitcoin, all other cryptocurrencies are likely to be considered securities, The New York Times reports.

Check out the performance of major cryptocurrencies at 7 am:

Cryptocurrencies with their highest levels in the last 24 hours:

Cryptocurrencies with the highest losses in the last 24 hours:

Check out how the cryptocurrency ETFs closed in the last trading session:

Check out the main news from the cryptocurrency market on Monday (6):

The alleged exchange suffers from a $200 million hack

Amid the cryptocurrency meltdown on Saturday night, a digital asset brokerage called Bitmart, which does not operate in Brazil, has reported being the target of an alleged hacker attack responsible for the theft of $196 million in cryptocurrency. The company’s CEO said the attack would have started by stealing private keys (passwords) from exchange wallets that hold customers’ money.

Blockchain security firm Peckshield estimates a loss of nearly $100 million in an Ethereum wallet (ETH) from the exchange, and another $96 million in assets running on the Binance Smart Chain, including Safemoon (saffron), Binance USD (BUSDe Binance coin (BNB), as well as BabyDoge and Floki meme coins.

The hacker had withdrawn the cryptocurrency and transferred everything to ETH using the 1-inch (1-inch) platform, then transferred it to Tornado Cash, a protocol that collects funds from multiple users and forwards them to other addresses in order to hide the origin of each transaction — a kind of laundering. Cryptocurrencies.

Brokerage FTX wants to raise $1.5 billion, worth $32 billion

The Information reported Friday that US crypto brokerage FTX is looking to raise $1.5 billion at a valuation of $32 billion.

Discussions about a new investment round come just over a month after FTX raised $420.6 million from funds like BlackRock and Tiger Global, worth $25 billion.

At the time, in an interview with CoinDesk, the company’s CEO, Sam Bankman-Fried, said he planned a series of acquisitions and partnerships to move FTX to more countries. The exchange, which specializes in derivatives, is in Brazil in a timid way.

Binance wants to reopen in the UK

Binance CEO Changpeng Zhao said Sunday that the company is working to re-establish its UK operations next year through a new license with the local government.

The company is prohibited from operating in the country after suspending activities due to an alert from the Financial Conduct Authority (FCA, for its English acronym). At the time, this action halted the launch of Binance Markets Limited, a London-based company that would operate similarly to Binance. Its Executive Director.

The initiative was the trigger for a wave of restrictions imposed by European regulators on the Asian stock exchange. Since then, the company has increased the level of engagement with governments and put in place new customer identity verification requirements, as well as having limited leverage available on the platform. In Brazil, the brokerage has also started to block access to products that users are not regulated.

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