No End in Sight for Crypto Losses

FXOpen

There is no end in sight to crypto losses. Bitcoin flash crashed to $334 per coin yesterday, Litecoin is currently trading below $4 and Peercoin hit fresh lows. For bitcoin, the $550 support proved a crucial breaking point. The virtual currency has lost over 100 dollars in the past week alone.

btcusdh1

The crash to $334 happened in a thin orderbook and was probably exacerbated by leveraged positions getting liquidated. The crypto is currently quoted at $442. Just like the fall down to £334, the subsequent rise was equally fierce, with BTC rallying back to $440 in less then 15 minutes. The crash on BTC-E comes just a day after rival exchange Bitfinex had a similar spike lower. Given the extent of the losses, we may see bitcoin consolidate before going for another leg down. Looking at both flash crashes, it seems like very few people are willing to keep their bids in the market, which doesn’t bode well for everyone’s favorite cryptocurrency.

 

Litecoin falls below $4, new low for Peercoin

ltcusdh1

Bitcoin’s silver had another bad week. Prices hit a low of $3.40 yesterday, a level not seen since July 2nd when prices spiked to $3 on low volume. Smaller altcoins Peercoin was not spared, PPC hit a new low of $0.565 yesterday.

ppcusdh1

No news catalyst

Despite the massive losses across the board, there was no news catalyst. The market seems to still be pricing in the effect of the proposed NY state regulations. Numerous entities including the Bitcoin Foundation called on the NYDFS to extent the comment period and engage the crypto community in a more direct manner. New York regulators have not responded to the Foundation’s request as of yet. According to most cryptocurrency experts, the proposed rules will create a steep barrier to entry and stifle growth in the bitcoin economy. Few days ago, Circle warned that if the NYDFS rules are adopted in their current form, the company will have no choice but to decline to service New York residents. The fear among crypto enthusiast is that the NY move will be followed by similar actions in other US states, impacting growth in the country.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News GBP/USD Price Falls to 1.26 after Bank of England Decision

Latest articles

Forex Analysis

EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March

As the EUR/USD chart shows at the start of the European session today, the exchange rate has dropped below EUR 1.08 per US dollar.

Tuesday's news contributed to this. According to Nasdaq.com, on March 26, 2024, The

What Is a Megaphone Pattern and How Can You Trade It?
Trader’s Tools

What Is a Megaphone Pattern and How Can You Trade It?

Chart patterns have been used to analyse financial markets for a long time. One popular formation in forex and other markets is the Megaphone. In this text by FXOpen, we'll explain what the setup is and how to trade using

Indices

NIKKEI-225 Analysis Indicates Possibility of Correction from Historically High Levels

On March 21, the value of the Japanese stock index reached a historical maximum, exceeding the level of 41,100 points. This was facilitated by:

→ Weak yen supporting exporters. It increases the value of profits earned abroad for a large

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.