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Yesterday’s slump directed by whales? Over $ 330 billion has been wiped out!

2 min read

 

BTC overflow
BTC collapse. Source: Shutterstock, Jin Odin

If you are watching the crypto market, you probably did not miss the fall yesterday, or the so-called “flash crash”. Approximately was discarded within two hours $ 330 billion.

The market experienced a real shock

Yesterday’s slump affected virtually every single cryptocurrency. According to CoinMarketCap, we have witnessed the liquidation of $ 330 billion, with market capitalization alone falling to $ 1.95 trillion. Subsequently, however, a rapid recovery came to about $ 2.12 trillion. The overall slump began as usual with BTC, which fell from $ 52,000 to $ 44,000.

BTC / BUSD

 

BTC / BUSD 30m TF. Source: TradingView

What could have caused the slump?

What, or who specifically caused this slump is debatable. Several traders and analysts believe that we have simply gotten into a position where whales were closing their longs. Some believe that the decline was caused by the official launch of BTC in El Salvador.

However, an important thing needs to be mentioned. Such sudden falls can be positive in some respects. The market will be cleared before further potential growth.

El Salvador officially runs with BTC

Yesterday’s decline in BTC and the entire crypto market was also used by the aforementioned El Salvador. President Nayib Bukele boasted that they had used the spill to buy 150 BTC.

So whether yesterday’s crash damaged BTC or not, one thing is clear. BTC did not lose strength and his journey of returning to an all-time high may continue.

Hitesh Malviya, the founder of itsblockchain.com portal, also commented on the situation:

“I’m still trying to figure out what really happened. Mass liquidation across the market. It reminds me of the historic slump of March 2020. Next time, think twice before opening a leverage shop. However, BTC is still in a bullish trend, as long as it stays above $ 43,000, we can bounce back. ”

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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