From past many days, Crypto market is under pressure of Bulls & Bears fight, but due to lack of volumes and market Sentiments towards Strong Bearish indications, yesterday was a big drama played by big Whaler's to manipulate the market and Crashed it out very fast.
Previously on Yesterday, $BTC dropped -9% in a few minutes as a news broke that Chinese property giant Evergrande filed for bankruptcy, and, The Wall Street Journal released an article suggesting SpaceX wrote down the value of its $BTC .
The rest of market followed BTC, but a few minutes later, another headline broke- "SEC set to Greenlight ETH futures ETF".
Then $ETH recovered very fast in response to this news.
As the Crypto market is highly reactive to any news, both positive and negative, it's difficult to pinpoint any one direct cause of its movements.
Although not the only cause of yesterday's drama- the "SpaceX dumped BTC" rumour that was sparked by the WSJ article certainly didn't help.
But remember how the market previously pumped when Tesla announced they bought BTC.?
These reactions can be explained by the concept of 'market reflexivity', which suggests that market sentiments is self reinforcing.
For eg., a rising market will attract buyers which leads to further appreciation in prices, which inspires further investment And so on. The reverse phycology is also true, Which we saw yesterday.
But this is nothing the crypto market can't handle - volatility is just part of the fun too...