The declines in the crypto money industry, especially in Bitcoin and Ethereum, officially turned the market upside down.
The talk of bans against cryptocurrencies in India caused digital assets to follow a fluctuating course. However, it has been learned that India will only make some regulations regarding cryptocurrencies, and that there is no ban. It is stated that cryptocurrencies in the country will be defined as an asset class and it is likely to be put into commodity status. With this development, a recovery trend was seen in cryptocurrencies in the past day.
With the effect of positive developments in the market, Bitcoin rose to the level of $ 59 thousand 398 yesterday. Today, however, the wind has completely reversed in the market.
On the other hand, the detection of a new vaccine-resistant and potentially dangerous coronavirus variant in Botswana, South Africa and Hong Kong negatively affected financial markets. It is stated that the concern of the new variant triggered the sales frenzy in cryptocurrencies.
With the deepening of sales in the morning, Bitcoin retreated to $ 53,500. Falling to its lowest level in 7 weeks, the loss of value in Bitcoin exceeded 8 percent on a daily basis. Ethereum, the leader of altcoins, fell below $ 4,000. Ethereum lost more than 11 percent.
The increased volatility in Bitcoin, which fell $ 3 thousand in about 1 hour, also put investors who made leveraged transactions into difficulties. On-chain data shows liquidations exceeding $300 million per hour and $600 million on a daily basis.