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market status; Bloody market day, disruption of exchange offices and high volume of liquidated capital


With the price of Bitcoin falling below $ 46,000, a significant amount of liquidity trading opportunities were created, and some digital currency exchanges were disrupted for hours due to the high volume of user visits. The crash came after the El Salvador government announced it had bought 200 bitcoins.

to the Report The price of bitcoin fell sharply yesterday, falling 19 percent below the $ 52,000 resistance. The crash came after the El Salvadorian government bought 200 units of the digital currency on Monday before the adoption of the Bitcoin Acceptance Act. Under the law, bitcoin is now the official currency of El Salvador.

Yesterday’s fall in prices caused around $ 18:30 (Tehran time) on Tuesday to sell about $ 1 billion worth of orders and $ 3 billion to liquidate trading positions. At the time of writing, Bitcoin is trading at around $ 47,000, down 10 percent in the last 24 hours.

Hargreaves Lansdown, a British financial services company, said:

This is instability [بیت کوین] That has caused a lot [مردم] El Salvador is not optimistic about accepting this digital currency. It would be dangerous to trade in a currency whose future price is uncertain.

El Salvador’s Vice President Bokle announced yesterday after the market crash that he had bought another 150 bitcoins at the “price floor”. Reports indicate that digital currency fans have also symbolically bought $ 30 worth of bitcoins each to commemorate the legalization of bitcoin in El Salvador, which has been dubbed “Bitcoin Day.” However, most of this good news seems to be from more than a month ago.

“Coin Kang, managing director of BKCoin Capital, a digital currency hedge fund that specializes in digital currencies, said:

The market has been trending in the last 6 weeks without any significant correction [صعودی] Has continued.

According to Kang, the rise in the price of altcoins is usually a sign that the market is bubbling. The digital currencies Bitcoin Cash, Litecoin and IOS (EOS) usually move until the end of the uptrend.

Liquidation of trading positions and disruption of exchange offices

At around 17:00 (Tehran time) yesterday, Coin Bass announced that “some orders are not being registered due to large volumes and are investigating this minor issue.” It is worth mentioning that this disorder was eliminated one hour after the announcement of Coin Bass. Earlier on Tuesday, the Kraken exchange was delayed in funding due to a problem with the bank’s purchases of the electronic clearing room. This problem was solved a little later.

market status;  Bloody market day, disruption of exchange offices and high volume of liquidated capital
Volume chart of liquidated long positions (purchases) of bitcoins

Analysts have cited the formation of a happy phase among small market traders as one of the reasons for yesterday’s massive fall.

Arcane Research wrote in its newsletter on Tuesday:

Capitalization rates [فعلی] Not too alarming compared to what we saw extensively during the first quarter of the year. In addition, historical data show that optimistic short-term investors tend to fluctuate by increasing the number of long positions.

The term capitalization rate in the futures market refers to the amount of commission that long contract holders (those who believe prices rise) and short contract holders (those who believe prices fall) must pay to keep the market in balance.

Also read: What is a Futures Contract? + Familiarity with Bitcoin futures

From a technical point of view, Bitcoin briefly fell below the 200-day moving average (MA) and was supported just above the $ 42,000 level. The massive sell-off came after several signs of erosion in the market and the price accelerated after entering the range of $ 52,000 to $ 55,000.

market status;  Bloody market day, disruption of exchange offices and high volume of liquidated capital
Bitcoin Price Chart (1-Day View of the Bitcoin Bitcoin Market)

Defy’s market value peaked before prices fell

The total value of the Decentralized Finance Market (DeFi) peaked at $ 140 billion shortly before the digital currency market plummeted yesterday. Some analysts have cited the upgrade of the Ethereum network in Hardfork, London, as one of the reasons for the rise in Diffie tokens over the past two months.

market status;  Bloody market day, disruption of exchange offices and high volume of liquidated capital
Decentralized financial market value chart

The flow of bitcoins into mutual funds

Investors have returned to investing in digital currencies after a few weeks of capital outflows. The CoinShares report shows that for the third week in a row, investment funds in digital currencies faced capital inflows with a total inflow of $ 110 million.

Bitcoin mutual funds had a total inflow of $ 59 million this week, which could be a sign of a change in investor sentiment.

At the same time as Solana’s price rose 74 percent, investment in the digital currency reached $ 13.2 million last week. Mutual funds in Ethereum also faced capital inflows this week and now hold an unprecedented 28% stake in all digital currency investment products.

market status;  Bloody market day, disruption of exchange offices and high volume of liquidated capital
Graph of capital inflows and outflows in investment funds in digital currency

Market situation of Altcoins

One of the Bored Ape Yacht Club tokens, a collection of 101 monkeys presented as NFT tokens, received a $ 19 million bid at the Sothebys auction. Sotheby’s initial estimate for the price of this unique token was $ 12 million to $ 18 million. Most of the $ 140,000 Ethereum 40 base Ethereum board tokens are currently on sale in the OpenSea market. The next auction of this collection is scheduled to be held from September 17 to 28 (September 26 to October 6) at the Christies auction.

LightCoin has recently launched a second layer protocol called OmniLite, which allows users to launch StableCoin and smart contracts on the digital currency network. The launch of this protocol has also added the ability to deliver unique tokens to the LightCoin Blockchain. Omni Light is based on the same Omni that used to be a second tier protocol on the Bitcoin network.

The LightQueen development team said:

Tokens generated using the Omni protocol can be considered as a LightCoin network extension, and as a result, transactions related to these tokens will be recorded in the LightCoin Blockchainchain.

The IOHK, which is developing the Cardano network, today formally submitted an upgrade plan to the Cardano core network to launch Hardfork on Sunday, September 12th. Immediately after the offer is approved, any Cardano digital currency holder can vote for this update. Cardano introduced the ability to support smart contracts on its experimental network last week, and Cardano creator Charles Hoskinson wrote on Twitter, “Congratulations to all, the Alonzo era is coming.”

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