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👉 BITCOIN DRAWS THE ENTIRE CRYPTOCURRENCY MARKET DOWN
Of the 10 most capitalized cryptocurrencies on the market, 8 have seen their prices fall over the past week, notably Solana and XRP which have fallen by more than 7%.
It’s a tough time for crypto investors. While bitcoin came close to $40,000 on Friday and continues to be in bad shape, the queen of cryptocurrencies is pulling the entire market down. Indeed, out of the 10 most capitalized cryptocurrencies on the market, 8 have seen their prices fall over the past week, notably Solana and XRP which have fallen by more than 7%.
This can first be explained by selling pressure which began last week, with speculative positions which were purged, pending the green light from the American authorities on spot bitcoin ETFs on January 10. Furthermore, several elements were already taken into account in prices, with a climate still a little complicated and volatile on the stock markets, which is causing sell-offs in all risky market assets, of which bitcoin is one. In addition, there is a small rise in the dollar, necessarily not very good for uncorrelated assets like bitcoin.
Finally, there is a bitcoin whale that has decided to liquidate its positions. As a reminder, a bitcoin whale is a specific term in crypto language designating investors with more than 1,000 bitcoins, whose movements can have an impact on the cryptocurrency market.
The data took a little time to be cross-checked, but we clearly identified the whale that gave the signal on January 12. A very large holder who had acquired 100,000 bitcoins in 2021, during the great period of increase, suddenly decided to get rid of them and at 49,000 dollars. There were almost $5 billion in short positions, representing 0.6% of the total capitalization of bitcoin. This triggered a whole bunch of other short positions, more scattered but expanding, a kind of fractal that continues to develop.
In the end, there are not too many signs of stabilization because if we rely on classic technical analysis, the next fairly clear supports are located on the November levels between 34,000 dollars and 37,000 dollars.
So there remains a lot of downside potential.
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