A panic wave has grown in Bitcoin and altcoins:
Causes of Declines
The declines in the cryptocurrency market since the start of the week have deepened on the last day of the week. More than one factor is thought to be effective behind the big retreat.
The cryptocurrency market is having a turbulent Sunday. While the number one cryptocurrency is withdrawn to the levels of 57 thousand dollars, many altcoins have double-digit declines.
The steady decline in Bitcoin since the beginning of the week deepened as the week ended. The total market capitalization of cryptocurrencies has declined from $2 trillion to $126 billion today to $1 trillion 975 billion. $150 billion was deleted in just a few hours. The loss, which has been seen in market value since the beginning of the week, reached 500 billion dollars.
It is estimated that there is multiple factors behind the declines. Friday's employment data had fueled fears of recessions in the U.S. economy. After that, significant losses were recorded in major indices such as the S&P 500, Nasdaq, and the cryptocurrency market took its share of it. It is considered that the other feet of the falls are the geopolitical tensions, as well as the chances of Trump winning the election begin to decline.
In addition to all this, Jump Crypto's transactions may have hit the market. Jump Crypto, the crypto subsidiary of Jump Trading, which specializes in algorithmic trading, has transferred over $400 million in ETH to exchanges in the last two weeks. “The reason for the crazy sales in crypto seems to be Jump Trading, which receives a margin call in traditional markets and therefore needs liquidity over the weekend or shuts down the crypto business for legal reasons,” says crypto entrepreneur Julian Hosp.
According to ZeroHedge, the decline in the cryptocurrency market is the result of a large sell order issued by a time-set algorithm. The news noted that the same algorithm was activated during the opening of the U.S. exchanges in each of the last 7 trading days and was left open over the weekend.
