Bitcoin in free fall: Cryptoinvestors on the brink of financial collapse?

Less than 20 days before Halving Bitcoin, the queen of cryptocurrencies is showing heightened volatility. In turn, it rises to more than $70,000 then undergoes brutal corrections, like today. The latest data indicates that BTC is deep in the red.

Bitcoin: Deep dive into the twists and turns of the cryptosphere

This pre-Halving instability of bitcoin raises concerns among crypto analysts. In this context, some are predicting a surprising rise for Ethereum. But the difficult (but temporary) economic situation does not only affect bitcoin: most cryptocurrencies experience similar difficulties.

According to CoinPediaThe cryptosphere is shaken by a sudden fall in bitcoinfalling to an alarming level of $66,000. This debacle triggered massive liquidations, sending shockwaves through the Bitcoin network. In just one hour, liquidations totaling $157 million were recorded, mainly long orders worth $144 million.

But it is not only bitcoin that is sinking into the abyss of speculation. The big names in altcoins are not spared. Ethereum fell by 6.71% and Solana by 9.32% over the last 24 hours, recording colossal losses of $92.26 million and $17 million respectively.

As the big names in the cryptosphere sink in, an intriguing trend is emerging: the flow of liquidity is leaving bitcoin and other major altcoins for head to memecoins, thus creating a “bizarre bull market”. While Bitcoin, Ethereum and Solana are losing momentum, the total capitalization of memecoins explodes to 70 billion dollars.

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BTC price evolution on April 2, 2024 – Source: TradingView

This crypto rush meme is fueled by the buying frenzy for recently launched tokens like “Dogwifhat” and “Book of Meme,” as well as the continuing craze for classic memes such as Pepe and Bonk.

In this tumult, Binance Labs is also in the spotlight, accused of selling some of its investment tokens during the market collapse. Massive transfers of GMT tokens, equivalent to $3.14 millionwere reported from Binance Labs to Binance Deposit, fueling speculation about behind-the-scenes maneuverings at one of the largest cryptocurrency exchanges.

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The Fed holds firm despite market jolts

While the eyes of the financial world are fixed on cryptocurrencies, the American Federal Reserve stays the courseeven if the waters are rough.

Bitcoin, the undisputed leader in the sphere of virtual currencies, is going through periods of turbulence. This volatility only adds to an already tense atmosphere in crypto markets. If US economic data surprises by showing unexpected growth, it also reduces investors' appetite for an imminent cut in interest rates from the Fed.

The markets, reacting to this new situation, are cautious. Investors are now scrutinizing signs of change in US monetary policyas the persistent volatility of cryptocurrencies fuels doubts about their long-term stability.

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In this atmosphere of caution, the American Federal Reserve remains unmoved, resisting the sirens of the market. Although expectations for an interest rate cut easethe Fed maintains a cautious posture, carefully evaluating the evidence before making any decisions.

As markets falter and investors navigate uncertainty, one thing is clear: the Fed is not getting carried away by the ups and downs of the market and maintaining a view of the big picture, despite the challenges that present themselves.

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