Several cryptocurrencies showed a sharp decline in the early hours of this Friday on Saturday (10). In less than an hour, cryptocurrencies such as Cardano (ADA), Solana (SOL), and Polygon (MATIC) lost up to 20% of their value.
However, the losses were not limited to just the currencies listed as securities by the SEC. Other giants like Dogecoin (DOGE) and Litecoin (LTC) also bled heavily.
With the slump sweeping across the industry, the market value of all cryptocurrencies has shrunk by around R$230 billion.
Traders liquidated as cryptocurrencies plummeted
It was already morning in both the European countries and Brazil as fall started and many traders were not yet ready for the bearish move. According to Coinglass data, the fall liquidated more than R$1 billion from the bulls in just one hour.
Even Bitcoin was hit, dropping 2.7%. However, other top 100 cryptocurrencies such as Dash (DASH), EOS (EOS), Toncoin (TON), and Shiba Inu (SHIB) posted even bigger losses of up to 25%, leaving buyers with a loss.
For a while, Cardano even lost its position as the 7th largest cryptocurrency to Dogecoin, but has since recovered. Polygon and Solana dropped out of the top 10, making way for Tron and Litecoin.
Apparently the losses are related to US regulatory pressure.
This Friday (9) Binance.US halted dollar deposits, announcing that it would become a “cryptocurrency only” exchange. Robinhood, which is also active in the stock market, announced the removal of three SEC-listed cryptocurrencies this week.
Ethereum rates spike as the market crashes
As the main network used by various projects, Ethereum rates saw a rapid increase during the market downturn, from 17 to 242 gwei in a few moments.
In addition to panicked investors rushing to sell their tokens, decentralized exchanges also saw a spike in usage. Stablecoin moves, made by bulls to profit from the slump, may also have contributed to network congestion.
Autumn can be an opportunity
Shortly after the drop liquidated another BRL 1 billion in longs, the market began to react. That is, the most daring traders may also have benefited from reaching the bottom.
Therefore, market panic can be a good opportunity to invest in solid projects. However, it is important to pay attention to regulatory news, especially in the US.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
