Bitcoin (BTC) started on Monday with the challenge of recovering after the sharp correction experienced over the weekend. The leading crypto currency fell almost 20%, and was reduced in value by $ 10,000 during the early hours of Sunday. In the last hours it managed to partially recover, and at the close of this note its price is USD 55,058.
BTC’s crash over the weekend may have been a consequence of a massive power outage in Xinjiang, a region of China with large numbers of miners. As commenter Willy Woo explained, about 9,000 BTC were sold to Binance before the price collapsed – which marks a person with information about what would happen in China – and then there were operations for more than 20 thousand.
On the other hand, specialists also suggest that the drop could be the product of profit-taking and the massive sale of quarterly futures contracts, a financial tool used mainly by expert traders. The maturity of these instruments began to unfold on April 13, and the results manifested abruptly. That pressure ended up leading to a cascade of liquidations.
However, the weekend slump didn’t just affect BTC. The rest of the altcoins, many of which had hit all-time highs at the end of last week, also suffered heavy sell-offs. In total, the crypto market settled more than 9.3 billion dollars.
Ethereum (ETH), the benchmark altcoin, hit $ 2,500 last week and plunged nearly 20% over the weekend. In the last 24 hours the fall was barely 1.8%, and at the close of this note its price is at USD 2,100.
XRP, Litecoin (LTC), and Bitcoin Cash (BCH) had declines of more than 3%, down to $ 1.27, $ 2.54, and $ 892, respectively. Cardano (ADA) and Polkadot (DOT) had slightly deeper lows (4%) and are trading at $ 1.19 and $ 34.53.
The only altcoins that posted gains on the day were Binance Coin (BNB) and Dogecoin (DOGE), which climbed to $ 488 and $ 0.37 after jumps of 5% and 23%, respectively.