The main cryptocurrencies plummeted more than 18% in the last 24 hours, while others lost more than 20% of their value
The price of bitcoin plummeted this Saturday, December 4, with a fall of almost $ 10,000 in approximately one hour and 18% in the last 24 hours. The value of the cryptocurrency marked $ 42,296 and in the course of the morning it rose to $ 47,600.
Ether, the second-largest cryptocurrency by market capitalization, saw a drop of around $ 1,100 over the same time frame and nearly 15% in the past 24 hours.
Solana, Cardano and XPR lost more than 18%, while other crypto assets such as Polkadot, Stellar, Dogecoin and Shiba Inu collapsed more than 20%
According to crypto news website Coindesk, sales in the spot market appear to have driven the crypto downward before triggering a huge stop loss, loss prevention tool, on the derivatives markets.
“So far, I have seen more than 4,000 bitcoins sold that pushed the market abruptly down,” said Laurent Kssis, director of CEC Capital and digital currency expert.
He added that at the time of the crash alone, 1,500 bitcoins were sold in less than a minute. The fall in cryptocurrencies, which registered the lowest level since the end of September, came as a result of the uncertainties caused by the omicron variant of covid-19 and the growing discomfort of the Federal Reserve Board (FED, for its acronym in English) due to high inflation.