It is a RED Saturday for cryptocurrencies, as they got battered by the risk aversion sweeping across financial markets. The omicron variant of the coronavirus has also led to risk aversion over concerns about what it might mean for global economic reopening.
In addition to the risk aversion is the mainstream resistance from the US regulators. CEOs of prominent crypto exchanges including FTX and Binance USA have all been invited for a hearing on crypto-assets.
Bitcoin (BTC) fell as low as $42,296 before recovering to its current price of $47,461.60 at the time of this report.
According to ByBit data, the Bitcoin market experienced $1.3Bn total liquidations in the past 1-2 hours, with $735mn liquidated in BTC longs on this drop.
Ether fared equally as bad, tumbling by as much as 17.4%, and currently trading at $3,925.05, still 14.1% down.
Crypto tracker ConiGecko, reported that the overall crpto sector has shed around 20% of its value, sliding to $2.2 trillion.
All other major crypto currencies are following BTC and Ether, all on a double digit loss; Cardano, Solana, Dogecoin, SHIBA INU, Avalanche, XRP, VeChain etc.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur