Image source: Dune Analytics
Yesterday, it was a bloodbath on the cryptocurrency market. A chain of dynamic events ultimately depleted $410 billion in market value and caused long position liquidations in the amount of $3 billion. Bitcoin (BTC/USD) reversed earlier gains, plummeting from $52,956 to $42,900 (-19%). El Salvador, which because the first country in the world to adopt BTC as legal tender, was not disturbed. They were quick to take advantage of the price drop, buying another 150 BTC.
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The flagship crypto has consolidated in the $45k – $47k range for now, but few can say what will happen next with certainty. We share a market analysis by Alexandra Clark, Sales Trader at the UK based digital asset broker GlobalBlock.
Majority of crypto market declined with Bitcoin
Most cryptocurrencies declined with Bitcoin, showing market dependency on it and the rudimentary nature of the asset class in general. However, tokens like Algorand (ALGO/USD), Near (NEAR/USD), and Solana (SOL/USD) were mostly unaffected, seeing double digit returns instead. Algorand has increased by 15% over the past 24 hours. Compared to previous days, stablecoins have seen a lot more volume. Of a total 24-hour volume of $282 billion, Tether (USDT/USD) accounted for more than half.
Coinbase vs. SEC: An uphill battle
In a battle of the titans, Coinbase is facing regulatory scrutiny from the watchdog over Coinbase Lend, a product the crypto exchange planned to launch later this year. Lend generates interest on holdings in USDC (USDC/USD) and SEC claims it’s a security. Coinbase CEO Brian Armstrong begs to differ, venting frustration with the SEC’s decision to sue his company without providing any explanation.
After reaching a peak at the end of August, Opensea daily volumes are dropping. This might signify loss of interest or (the better option) a stabilisation of the NFT market.
Will Panama be the next country to adopt BTC as legal tender?
Panama is introducing a bill to use BTC and other digital assets for tax, civil, and commercial purposes. The country believes crypto has the potential to enhance government transparency, attract investments, and create jobs.
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