Crypto

After $1 Billion Crypto ‘Black Monday’ Selloffs, Sales Dip Ahead of FOMC

Cryptocurrency liquidations continued into Tuesday morning, with drawdowns tapering off after the sector’s “Black Monday” saw more than $1 billion worth of crypto derivatives liquidated over a 24-hour period, according to data from Coinglass.

Overall, the total crypto market capitalization has lost more than two-thirds of its value since it peaked in November, according to Coinmarketcap, falling from $3 trillion at its peak to $952 billion as of Tuesday at 11 a.m. am New York time.

After briefly dipping to $20,950 per unit early Tuesday morning, the bitcoin price (BTC-USD) settled at $22,652, a 5.2% loss over the last 24 hours according to Coinmarketcap.

Meanwhile, ether (ETH-USD) is trading at $1,236 per coin, a 1.31% gain on the day after seeing some of the worst losses from major cryptocurrencies from Sunday to Monday.

According to DeFi Llama, the total stablecoin market capitalization is currently $158 billion, down 16.4% from its May 1 peak of $189 billion, a 1% loss on the day.

Analysts remain extremely cautious as investors await Wednesday’s press conference and FOMC meeting from the Federal Reserve.

“If Wall Street gets a very aggressive decision and press conference, Treasury yields and the dollar could rise once again and that would test the line in the sand that has been drawn by many cryptocurrency traders,” said Edward Moya, Senior Market Analyst at Oanda.

“If Bitcoin breaks below the $20,000 level, support may not emerge until the $17,000 level. Another crypto drop may not see major support until the summer 2019 high around the $14,000 level,” Moya continued.

Also making headlines on Tuesday was an announcement by Coinbase (COIN) that the company would lay off 1,100 employees, or 18% of its workforce, in a bid to stay financially sound.

“It looks like we are entering a recession after a 10+ year economic boom,” Coinbase founder and CEO Brian Armstrong said in a blog post this morning. “A recession could lead to another crypto winter and could last for an extended period. In previous crypto winters, trading revenues (our largest source of income) have dropped significantly.”

People watch as the logo of Coinbase Global Inc, the largest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron in Times Square in New York, U.S., April 14, 2021. REUTERS/Shannon Stapleton

People watch as the logo of Coinbase Global Inc, the largest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron in Times Square in New York, U.S., April 14, 2021. REUTERS/Shannon Stapleton

The major cryptocurrency exchange is the latest of the cryptocurrency firms announcing layoffs, including competing exchanges Gemini and Crypto.com, as well as lender BlockFi, which have cited “crypto winter” as the main reason for the layoffs. cuts.

In addition to the Fed’s announcement, traders are also hoping for more clarity on issues related to Celsius Network’s solvency, Noelle Acheson, head of research at Genesis Trading, told Yahoo Finance.

Since pausing withdrawals on Sunday night, the crypto lender has “become a forced seller of other assets,” according to Acheson.

“The market is still digesting what this could mean,” he said, adding that even if the company reopens recalls, Celsius could see a wave of bailouts that could trigger more selling.

Here is a roundup of other crypto engines.

Major cryptocurrencies such as Solana (SOL-USD) up around 6%, Cardano ADA Token (ADA-USD) up around 4%, Chainlink (LINK-USD) up Up 15%, Polkadot’s DOT token (DOT-USD), up 5%, and Avalanche’s AVAX token (AVAX-USD), up 1%, have all seen gains on the day.

Like bitcoin, liquidations continue for Binance’s BNB token (BNB-USD) down 1%, Tron (TRX-USD) down 9%, and Polygon’s MATIC token (MATIC-USD). ), with a drop of more than 3%.

David Hollerith covers crypto for Yahoo Finance. FOLLOW ME @dshollers.

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