It was not a good day for crypto enthusiasts as crypto markets crashed today after an ETFs prediction by the Matrixport. Crypto financial services platform Matrixport said that they are expecting that SEC will reject all Spot Bitcoin ETF applications in this month.
After this prediction the crypto market crashed badly. Bitcoin price fell by 9% while altcoin bleed more badly. Some of the altcoins fell by 15 to 20% . Following the crash $HIVE price declined by 10% while Ethereum price dropped by 11%.
According to data from Lookonchain this crash resulted in a liquidations of over $500 million of long positions. This is a big amount of liquidation happened which is not ordinary.
Some of the analysts said that the market did not crashed due to Matrixport prediction about ETFs. They presented their own reasons behind todays market dump.
Crypto transaction tracking websites earlier noted that a significant amount of Bitcoin holdings is transferred to exchanges by the Miners. This is why Some of the analyst say that it could be the miners who dumped their Bitcoin holdings in order to manage costs and to take profits. Miners are usually seen doing this when prices go up.
On the other hand some of the experts believe that the market crash happened because it was over bought. The greed index was very high which was clearly indicating that the pullback could happen anytime. Well in my opinion this could be a valid reason for the crash as we have seen bitcoin price jumped from $43k to $46k quickly so a pullback was expected.
According to my experience and observation a negative news rumor effects markets somehow which should not happen. Markets should not react to rumors instead markets should be matured enough to pass rumors.
On the other hand market crash proved well for those who bought the dips as we have seen that market is already recovered close to 50% from the dip. Bitcoin which fell to 40500 is now trading above $43k while hi e price is also recovered from the dip.
Those who are in for the longterm they definitely enjoyed the dip as they grabbed some discounted bags of their favourite crypto coins.
Only futures traders opening the long positions are effected badly as they lost huge money into this crash. Spots are not effected this way. This is why i prefer spot trading as futures is very risky hence it is not my cup of tea.
Luckily Right before the crash i loaded some usdt in my binance account to buy ETH. i managed to get some at discount so it was also good for me. I needed ETH in farming for an airdrop.
One Bitcoin is always equal one Bitcoin, keep in mind that you lose only when you sell.
As the market is already recovering hope that it will get back to its place with time. Just Keep hodling your bags because Holders are the winners.
Thats it for today. Thanks
for reading. What do you think about my today's topic? Let me know your thoughts in comment section. In the end i would like to Wish you and your family a happy day ahead. Stay Blessed.
Motivation Dose
Get out of your comfort zone and fight the troubles and hurdles that come your way to success. Success awaits you.
Life is beautiful ، live it to the fullest. Dont be hopeless. Stand strong in the ups and downs of life as its part of life. There is always a light behind every dark side.
About Author
