The cryptocurrency market lost more than $9 billion in only a couple of hours after the price of several tokens and small market cap cryptocurrencies dropped.
After the relatively strong rally which saw some tokens even rise from 30% to 50% in 24 hours, the crypto market corrected and saw a decline in the value of tokens. Some of the most affected coins in the new drop were Nano, Zilliqa, and Aelf – which dropped by 18%, 13%, and 12.9% respectively.
Currently, the analysts believe that the decline in price was triggered by the strong recovery of the market which “needed to correct”. One expert crypto trader and FX market maker named Alex Kruger commented on the situation, stating:
“BTC was rejected at $6,600 and the whole crypto complex fell like a house of cards (-10%/20% this morning). A strong bounce out of massively oversold levels does not indicate a new bull run has started.”
He also said that the majority of the traders in the crypto sector mistook a minor corrective rally that was formed by strong oversold conditions in the crypto market for a bull rally. This made them expect that the market will perform better than its recovery in the first place.
If we go back to yesterday’s price situation, the price of VeChain increased by 90% at one point against the US dollar in only 24 hours. As analysts say, a market recovery from such a bullish run is always normal.
Over the next few days, analysts expect that the Bitcoin will further stabilize at $6,400 – at least for a couple of days – before another bullish rally is initiated. Currently, the volume of both Bitcoin and Ethereum remains equal to its July levels.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]