On August 19, the “bulls” suffered another defeat in the cryptocurrency market – in a day, the rate of the first cryptocurrency fell by 9.29%, Ethereum fell by 11.45%, and the volume of liquidations exceeded $670 million.
Now Bitcoin is worth $21,100, while the total capitalization of the cryptocurrency market has remained above the psychological mark of $1 trillion. However, the fall was quite large. Apparently, the situation in the US stock market became the catalyst for the next decline in cryptocurrency rates – the Nasdaq index fell by 2.6% per day, and the cryptocurrency market has long been firmly tied to the stock market.
Analysts also believe that the recent statement by the Energy and Commerce Committee of the US House of Representatives that lawmakers are “deeply concerned” by the popularity of cryptocurrency mining on the Proof-of-Work algorithm could have had an impact. In their opinion, the mining of such digital assets requires too much energy, and this can provoke an increase in the demand for fossil fuels and the generation of “dirty” electricity.
The fall of the cryptocurrency market led to the liquidation of margin positions for $ 673 million. Analysts emphasized that cryptocurrency traders are still too fond of margin trading. Of course, trading with leverage gives more profit, but, against the background of the high volatility of digital assets, there is a high probability of losing your funds.
Earlier, Michael Novogratz said that he does not expect the price of bitcoin to rise above $30,000 by the end of this year.
Source: Bits
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