Virtual currency is plummeting!
As the second quarter began, Bitcoin fell sharply, and with it, the overall market fell as well. The large-scale liquidation spread throughout the network, leaving many investors panicking. But what caused this sudden plunge, and what does it mean for the future of cryptocurrencies?
Continue reading to uncover the details of this flash crash and its potential impact on the market.
Bitcoin go diving
Bitcoin, the leading cryptocurrency, experienced a dramatic decline, falling to as low as $66,000, and Ethereum at one point fell as low as $3,319. The rapid decline in prices led to a wave of large-scale liquidations across the board.
Within just an hour, the Bitcoin network saw a staggering $157 million in liquidations. This was primarily driven by the exit of long positions totaling $144 million.
Global markets take a hit
The impact of the Bitcoin crash has been felt across the world, with Ethereum plummeting 6.71% and Solana witnessing a 9.32% plunge in the past 24 hours. This resulted in losses of $92.26 million for her on Ethereum and $17 million on Solana.
Meme coins ride the wave
In an unexpected turn of events, liquidity appears to have shifted from Bitcoin and major altcoins to meme coins, marking what analysts are calling a “bizarre bull market.” While traditional cryptocurrencies faced outflows, the total capitalization of memecoins soared to a staggering $70 billion.
The surge in meme coin market capitalization is largely due to frenzied activity surrounding newly launched tokens such as “dogwifhat” and “Book of Meme,” as well as the resurgence of older meme coins such as Pepe and Bonk. .
Read more: Top meme coins gear up for explosive 100% rally in April
Binance Labs under surveillance
Amid the market turmoil, allegations regarding the activities of Binance Labs emerged, with reports suggesting that investment tokens were sold during the crash. SpotOnChain revealed that a large amount of his 9.33 million GMT tokens worth $3.14 million were transferred from an address associated with Binance Labs to a Binance Deposit address.
Countdown to half-life
As if the chaos wasn't enough, the upcoming Bitcoin halving, the fourth in history, is adding to the excitement. Bitcoin has recently closed in the green for seven consecutive months, and market sentiment remains cautious, with BTC/USD levels hovering near their lowest since March 25th.
Analysts are keeping an eye on the support level, with a retest of $67,200 looming if Bitcoin breaks above the 4-hour 200-period moving average.
Read more: Bitcoin Halved in 19 Days: Here's the Best Investment Strategy for the Next 6-12 Months
