A chain reaction of liquidations on overleveraged traders probably caused that on September 7, the day that El Salvador are bitcoin (BTC) introduced a law that virtually all cryptocurrency prices crashed sharply. Nevertheless, the market is already starting to recover quite quickly, at least the prices of the altcoins. There are several significant risers among them today. The total market capitalization dropped to $2.05 trillion yesterday morning, but is now back at $2.20 trillion, an increase of no less than $150 billion in 24 hours.
Bitcoin Fear and Greed Index is 45 – Fear pic.twitter.com/kGFseqal6n
— Bitcoin Fear and Greed Index (@BitcoinFear) September 9, 2021
Bitcoin (BTC)
Bitcoin crashed down hard on September 7. The price briefly dived from about $52,500 to $42,500, but then immediately made a bounce back to $47,000. However, it didn’t stop there and bitcoin dropped again yesterday morning and briefly dived to $44,000 on several cryptocurrency-exchanges. Bitcoin makes another bounce up there, but the resistance around 47,000 was again too great. According to on-chain data, the dip was quickly swallowed by the whales:
Over-leveraged traders: Rekt
Bitcoin whales: Name name nameOn-chain tracks broader trends, which are only strengthening. Zoom out. #BullMarket pic.twitter.com/EM1wSXPYX7
— Will Clemente (@WClementeIII) September 9, 2021
Since then, bitcoin has held steady above USD 46,000 and appears to be consolidating around USD 46,500. Volume and volatility are starting to decline sharply, but that’s to be expected after the very strong move this week. Although bitcoin has lost the increase of the past 3 weeks, the price is still higher than the three months before. Bitcoin may seem to find a bottom here to be able to rise further, but for now it seems that it is mainly the altcoins’ turn. Bitcoin dominance drops below 40% today.
Altcoins
Ethereum (ETH) initially took a heavier blow than bitcoin during the crash. The ether price also fell further yesterday morning and even ended up at $3,200, a drop of 18% from the $3,900 where the price hung for half a week. Still, ether’s recovery continued yesterday, peaking around $3,575 last night. Ether appears to be consolidating around USD 3,500 at the time of writing.
Cardano (ADA) fell even harder during the crash, dropping 23% from $2.85 to $2.20 yesterday morning. Despite this, ADA is now also recovering faster than the above two crypto. At the time of writing, the ADA rate is at $2.56, up 16% in 24 hours.
Solana (SOL) steals the show again today. SOL was not only less affected by the crash than most other crypto, the price is now already on the rise. SOL briefly dipped to $1.50 yesterday morning, but reached a new one last night all-time high (ATH) of $213.5. That is an increase of no less than 40% and SOL is even 440% in the plus this month. Solana is now too ripple (XRP) surpassed in market capitalization and takes the sixth position of largest crypto in the market.
However, Solana is neither the only nor the fastest climber on the market today. FTX token (FTT), cosmos (ATOM), icon (ICX), avalanche (AVAX), shiba inu (SHIB), omg network (OMG) and waves (WAVES) are all up 20 to 25% today. Algorand (ALGO) even rises by 28% and elrond (EGLD) and fantom (FTM) by no less than 35%. Hedera hashgraph (HBAR) and near (NEAR) are almost 40% in the plus, but the iost (IOST) which is rising the fastest today with 43%. Near and fantom are even more than 100% in the plus this week.
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