A senior investment and market analyst, Susannah Streeter, stated, “It’s not showing the pattern of a flash crash, as the assets didn’t immediately rebound sharply but sank even lower in the hours that followed. It seems likely that it was as a result of a large sale transaction, in the absence of other more external factors.”
The cryptocurrency markets are in the worst dip ever after the mid-June crash. They have never seen such a negative trading week as what they are experiencing right now.
Bitcoin’s condition has turned around for the worse in the last 24 hours. On Friday, it fell to its lowest level in over three weeks, dipping below $22,000 amid a sudden crypto sell-off in early European trading. As of writing, Bitcoin is currently trading at $21,445.
This happened shortly after they skyrocketed to $25,000 last weekend on two different occasions, marking a new multi-month peak. But all this immediately changed, and it declined by over $1000 in hours.
A senior investment and market analyst, Susannah Streeter, stated,
“It’s not showing the pattern of a flash crash, as the assets didn’t immediately rebound sharply but sank even lower in the hours that followed. It seems likely that it was as a result of a large sale transaction, in the absence of other more external factors.”
Although it tried to recover from the dip, Bitcoin didn’t go beyond the $24,400 mark. Shortly after, the market saw another Bitcoin downturn to $21500 on August 19, and just yesterday, it slumped to $20,800.
This is seen as a three-week low, meaning it is roughly 15% down in the week, and its market cap is close to breaking below $400.
On the other hand, altcoins such as Ethereum, Cardano, Solana, Ripple, Dogecoin, Polkadot, Shiba Inu, Avalanche, and Tron are not exempted from the downturn. As a result, the whole crypto market cap is down by $30 billion in a day and is close to breaking the $1 trillion mark.
Streeter also said that Cardano made the first dip, followed by Bitcoin and Ether, and the smaller coins followed suit.
She added,
“This fresh chill has descended amid fears that the market is heading for a crypto winter. Although at $21,800, Bitcoin is still some way off its June lows of under $19,000, volatility is once again wracking the market.”
