While September 7 was shaping up to be a festive day with Bitcoin becoming the official currency of El Salvador, the crypto market has been experiencing a sharp correction in recent hours, going from the cheerful and optimistic green of the last few days to the bright red of an artery that is suddenly emptying out in a big rush. The time will soon come to question the “astonishing” correlation between the events, for the time being let’s confine ourselves to a formal statement on the extent of the damage.
Another day in the wonderful (but chaotic) world of Bitcoin and cryptocurrencies
If you’re an old hand in the industry, the last few hours will leave you with a taste of déjà vu, as the episodic 10 or 20% purges of Bitcoin’s price are as much a part of its identity as its fabulous growth over the last decade.
And as a veteran, you also know that as unpleasant as the gale may be (let’s be honest, you never quite get used to it), it will above all offer the smartest person the opportunity to pick up from the ground what the most fragile will have let fall from their trembling hands, the famous “Buy the dip”.
And if you are one of the newcomers, it’s time to learn how to take a deep breath (yes, the same as when preparing for childbirth), as this baptism of fire can be very trying, especially if you’ve come back in the last few days, whether it’s on the advice of a friend (who strangely enough is not taking your calls anymore tonight), or pushed by the appearance of an easy gain on a crypto market reputed to make millionaires. Rejoice: you’ve just realized that it’s not true (or at least a little more complicated than that), and this learning will ultimately be more valuable than you can currently imagine.
But for the time being, this talk of positivism will have little impact (which is also perfectly normal), so let’s focus on the objective and analyzable facts.
A 100 billion crypto correction
Factually, the Bitcoin and crypto market has lost $100 billion in the last few hours and suffered a drop of over 10% in 24 hours.
Bitcoin thus falls from a price of $ 52,000 to less than $ 47,000, Ethereum which was close to $ 4000 this morning takes the broth at less than 3500. And with the market’s leading players stumbling, the whole marketcap barnyard is going around and around, chirping. We’ll avoid an anxiety-inducing recap, but consider that your altcoin portfolio has melted by between 15 and 20% in a snap of the fingers that Thanos would not have disowned in his effects.
Only Solana (SOL) stands out in this falling tide, even allowing itself the luxury of tickling XRP and its 6th place in the rankings, after having chased DOGE out of the niche in recent days.
And in the fall, as is often the case, it is the traders exposed to high leverage effects that have been the most impacted. If the specialized site Bybt.com indicates a total of 2.58 billion liquidations of positions, it is in fact more than 320,000 traders whose positions have been liquidated, a thought for them.
It may be hard to believe in the current headache, but after such a free fall, it will quickly be time for a rebound. A rebound that could even have already begun with a DOT (Polkadot) that is currently recovering 5% or a Terra 10%, an opportunity to identify the most robust assets in a disrupted situation.
