Crypto Weekly: Bitcoin Crashed by 30%

Dec 06, 2021
05:12
2 min reading

Choise.com team

Why this fall happened is still unknown. Most likely, it was influenced by the global situation and concerns about a new strain of coronavirus. Because of this, many assets on the stock market have also declined. Therefore, it is highly likely that the fall was not tied to any event, but simply the market was in an overheated state.

Also on Saturday, there happened one of the largest hacker attacks among centralized crypto exchanges. This time, the BitMart exchange was attacked, and assets worth $150 million were withdrawn. Hackers were able to seize access to the hot wallets of the crypto exchange in Ethereum and BSC networks. After that, the attackers carried out a series of exchange operations on the 1inch service and sent funds to the Tornado Cash mixer. According to the head of BitMart, the amount of stolen funds is only a small fraction of the total assets of the exchange.

Another hack happened in the DeFi industry. Hacker was able to withdraw $120 million from the BadgerDAO protocol. He was able to take advantage of the exploit in the user interface smart contract. At the same time, the hacker carried out this attack starting from November 11 but withdrew the main amount on December 1st. The day before, another MonoX protocol was also hacked and lost $31 million.

Another notable news is an important update on the Binance Smart Chain. This improvement will increase the full synchronization of nodes with the network by 60%. In addition, a commission-burning mechanism was introduced. It is similar to the Ethereum network. The day before, the personal wealth of the head of Binance became known. It is estimated by journalists to be nearly $90 billion, making him the richest ethnic Chinese in the world.

At the beginning of last week, important news came from Twitter. Its head, Jack Dorsey, has made the decision to step down as CEO. At the same time, he will remain on the company’s board of directors. Later, it became known that Jack Dorsey renamed another company. Square will now be called Block. This once again shows a half-life attitude towards Bitcoin and the blockchain and most likely means that he will completely direct his attention vector to the crypto industry.

The past week turned out to be one of the most negative for Bitcoin in terms of the price drop over the week. Historically, such collapses in the cryptocurrency market do not occur more than twice a year. Let’s take a look at how the Bitcoin chart has changed and what to expect from the cryptocurrency market in the coming week:

btc usdt fall

As you can see from the chart, the fall was very strong and it broke the previous picture. However, buyers were able to bring the price back to $49,000 pretty quickly and are holding it down for now. As a result of this collapse, almost $3 billion was liquidated in a few hours. In the futures market, the price of Bitcoin dropped to $40,000. In other words, it was a real flash crash on the crypto market, which happens from time to time.

The chart has formed a large descending channel and is now near the middle line of this figure. According to it, the price of Bitcoin can bounce to the upper border, which is in the range of $55,000 – $56,000. However, it is extremely risky to enter purchases now. Stop losses should be used to protect against even more powerful falls, as such long candles are usually a harbinger of a new decline.

Many altcoins fell by 40% or more. This means that the recovery of the entire cryptocurrency market can be long and last for several months.

Moreover, micro-futures trading on Ethereum on CME is starting today. When a similar instrument was launched on Bitcoin, we saw it fall a week later by 45% in May and a long sideways movement in the summer. Therefore, the current market situation is very tense and it will only contribute to volatility and sharp movements.