Bitcoin and Ethereum throw billions after a record-breaking weekend

Crypto had another wild weekend – as it was the trend throughout 2021. In this latest chapter, Bitcoin climbed to new heights before aggressively reversing profits.

On Sunday, the world’s largest cryptocurrency reached a high of $ 61,700 after an almost vertical price increase that began on Saturday morning European time.

But then came Monday morning, and an almost identical price drop caused prices to fall back to $ 50,000. The $ 3,000 drop, according to Nomics, represents a 4.9% drop in the last 24 hours. For global market capitalization, which rose above $ 1.82 billion over the weekend, prices fell to $ 1.74 billion, resulting in an almost $ 100 billion loss.

The move came at the same time as Coinbase, Bitcoin and Direct Deposit all became trending topics on Twitter. The lost topic refers to some Americans receiving their stimulus checks as part of Joe Biden’s $ 1.9 billion COVID-19 relief bill.

If American citizens were to buy Bitcoin at that time, it would have been quite the introduction to the whirlwind world of cryptocurrencies.

The picture was no different for the majority of the world’s largest cryptocurrencies. Ethereum followed a similar path as the rise of Bitcoin and then fell, losing 4.1% in the last 24 hours.

In the middle capitalization – projects worth between $ 10- $ 40 billion – a loss of 4% meant that you were one of the lucky ones. Cardano, XRP, en Litecoin all fell by 4%, while Chain link fell by 5%, Uniswap fell by 7% and Bitcoin cash slips more than 8%.

You have to go all the way to the edge of the top 20 to find prizes in the green. Hex and Algorand are both up 9% higher, while VeChain is up 7.5%.

What makes the markets so ghostly? Bitcoin and the broader crypto market tend to climb aggressively before retreating quickly. This can be attributed to several factors. The first is exchanged in and outflow.

Large HODLers can cause ripples in the market – which are then amplified by collisions designed to execute transactions, depending on changing market conditions – as they move money in and out of exchange.

Movements such as the above can be seen by others as a sign that it is time to slow down the rise in prices, causing collective dumping on assets to lower prices.

Then there is a broader economic picture and how it plays with crypto pricing. Asian stock markets have had a difficult session today as there is growing concern that the Chinese government will have to take action to make markets flow like the economy continues to grow.

In the US, treasury yields have the burdensome measures that are a struggle for the broader economy stayed high, which heightens the story that the US economy is overheating.

If that happens, inflation will rise which could limit lending, which could hamper a recovery to COVID. All of this is hampering investor sentiment. The more pessimistic it is, the less likely it is that they will put money into exotic assets like Bitcoin.

Another factor unique to this particular cycle can be attributed to the turnaround of Bitcoin holders from India.

The Indian government is believe planning to ban cryptocurrencies.

New reports on the ban have resurfaced after the country’s finance minister recently said a “calibrated” stance on cryptocurrencies would be taken.

India is ranked 10th largest market for Bitcoin trading volume Statista, which means that measures such as the above are likely to have significant significance impact on prices.