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Bitcoin, Ethereum And Other Cryptos Pare Losses After Overnight Plunge

CryptocurrencyDec 04, 2021 02:31PM ET
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by Robert Zach and Daniel Shvartsman

Investing.com - Bitcoin plunged in early morning Saturday trading, taking the torch from a risk-off week in the markets at large, though it recovered later in the day. At 2:25pm ET, the leading cryptocurrency was trading just over $49,200, down over 8% in the last 24 hours, but recovering from the biggest drop in crypto since September 7th.

The broader crypto complex has seen similar plunges and then paring of losses, including, Ethereum, Solana, Cardano and Ripple XRP plunge double digit percentages. Dogecoin and Shiba Inu, two leading meme tokens, have been caught up in the volatile trading as well.

This follows on Friday’s stock market action, where the S&P sold off .8% and the Nasdaq sold off nearly 2%, driven a miss on the jobs report as well as Docusign’s 42% plunge and the implications for the software sector. The week was marked by fears over the Omicron variant of Covid 19 - though the variant’s severity remains unclear, and it may be ultimately a positive development - as well as Fed chair Jerome Powell’s ‘retirement’ of the term transitory inflation, signaling that tapering plans and perhaps rate hikes will be coming in the near future, leading the market to a risk-off environment.

Bitcoin closed the market trading week down a little over 5%, but the move accelerated over Friday-Saturday overnight trading. The selling was its most marked around midnight Eastern time, where bitcoin crashed from $52,000 to a low of $42587.8, per the Investing.com index of the cryptocurrency, before rebounding to the current levels.

Alt Coin and Ethereum Performance

Bitcoin and its crypto peers remain up massively on the year, with bitcoin up ~61% year to date, and is trading above September levels still, but volatility is a feature for crypto traders. The question will be whether this is a typical pullback, or whether the general risk-off mentality signals a more enduring sell-off in the crypto ecosystem.

Ethereum was down slightly less at 15%, but recovered to nearly $4100 from a low in the $3550 range. Ethereum remains up nearly 500% for the year amidst questions over whether it might overtake Bitcoin in the future (Bitcoin’s market cap remains nearly double Ethereum’s market cap, however). Meanwhile, in the last 24 hours alt coins performance includes:

  • Solana: -5.8% (after a -18% mark earlier today)
  • Cardano: -10.5% (from -18%)
  • Ripple XRP: -13.8% (from -20%)
  • Polkadot: -12.5% (from -21.5%)
  • Avalanche: -11% (from -18.5%)
  • BNB/BTC: -5.9% (from -14%).

According to data from Coinglass (formerly Bybt), positions worth around $2.4 billion have been liquidated in the past 24 hours, with BTC representing over 42% of them. The crypto market lost over $ 550 billion in market capitalization to just $1.88 trillion at around 7:20am GMT, before recovering to $2.3 trillion dollars at time of this update.

Bitcoin’s and Ethereum’s Levels

BTC’s fell to a low of $42,587, its lowest level since September 30. The move downwards pushed Bitcoin's market cap down to $896.13B, or 40.92% of the total cryptocurrency market cap. That leaves Bitcoin down 13.5% for the week, and down 31.2% from its all-time high of $68,990.63 set on November 10.

Ethereum was down only 19.5% off of 52-week highs, but vulnerable to falling through technical support levels around $3750 and then further down at $3300/3500.

It remains to be seen how traders will react to this sharp crash and whether there’s any knock-on effects to broader markets.

(This piece was published at 6:25am ET and updated at 2:30pm ET).

Bitcoin, Ethereum And Other Cryptos Pare Losses After Overnight Plunge
 

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Comments (16)
Jerry Zhou
Jerry Zhou Dec 05, 2021 12:34AM ET
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A real test of conviction for crypto hodlers in their coins.. Will majority diamond hand thru this decline, or is it gonna be spiralled into a domino effect of paper-handlers selling into the dip after day over day of pain and losses..?
William Bailey
William Bailey Dec 04, 2021 5:52PM ET
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Crypto is wonderful!! It destroys the free credit the Fed pumps is… destroyed 400 b yesterday
whisky noob
whisky noob Dec 04, 2021 2:53PM ET
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imagine which crypto is NWO plan for long term run…. good luck
Ognjen Gacic
Ognjen Gacic Dec 04, 2021 2:53PM ET
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Well told, you are smartBlockchain is future🦅
Karr Mqz
Karr Mqz Dec 04, 2021 2:51PM ET
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Web 3.0 will run on blockchain. How do you like them apples. Like it or not. Its happening. Period.
Jimmy Coyne
Jimmy Coyne Dec 04, 2021 2:48PM ET
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There are 2 types of people:Those who believe blockchain is the future. And those who haven’t researched it enough.
Peter ONeill
Peter ONeill Dec 04, 2021 2:48PM ET
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BIG difference in Blockchain Tech and the current crop of unregulated Digital Currencies. All it would take is one stroke of a pen and Bitcoin etc would be worthless overnight. China and India have already outlawed it and chances are the US Fed or main US major banks will replace in over the next 5-10 years with a State-sponsored / regulated digital currency (something China, Bank of England and ECB are already working on separate projects on). Even Meta and its Novi project are on hold due to worries wont get FED approval
Alan Rice
Alan Rice Dec 04, 2021 2:35PM ET
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Tulip Bulbs have more substance.
Victor Yakov
Victor Yakov Dec 04, 2021 11:45AM ET
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It looks like the big money anticipate a market crash coming.
Jan Buyle
Jan Buyle Dec 04, 2021 10:29AM ET
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All crypto's are rat poisson square....
MuraliKrishna Brahmandam
MuraliKrishna Brahmandam Dec 04, 2021 9:22AM ET
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Sell crypto to buy stocks, sell stocks to buy crypto until both go to zero. repeat across all markets
Miriam Morkhul
Miriam Morkhul Dec 04, 2021 9:22AM ET
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Or maybe get physical gold while you still can.
Dave Stewart
Dave Stewart Dec 04, 2021 9:17AM ET
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Resistance is futile! LOL, sorry couldnt resist a little Star Trek humor. I, like you all loathed BTC once. After looking back at BTC’s life cycle it became clear that BTC isnt going anywhere. Pandoras box has been opened. This bell cannot be un-rung. Defi is the future of finance.
Isaac Mitchell
Isaac Mitchell Dec 04, 2021 9:12AM ET
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Government manipulation hoping people will bail on their positions.
Tyrone Jackson
Tyrone Jackson Dec 04, 2021 9:12AM ET
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Haha Yea right
Peter ONeill
Peter ONeill Dec 04, 2021 9:12AM ET
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What Gov manipulation is this then? I know India and China have both made it illegal to trade but that was weeks ago - so what's new? All cryptocurrencies are speculative assets and only worth as much as someone is willing to buy for. There is no guarantee or security behind any of them.
George Roshtein
George Roshtein Dec 04, 2021 9:10AM ET
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inb4 everyone realizes that the government wont be able to manipulate this once dollar literally dies. 1BTC = 1BTC forever. hold on, don't get tricked by people that are evil since ancient times.
luckyyy gold
luckyyy gold Dec 04, 2021 9:06AM ET
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A virtue thing where you need to buy using currency… rather own gold which is proven stable for the past 100 years
Nordin Mohamad
Nordin Mohamad Dec 04, 2021 8:33AM ET
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it is digital ponzi scam ...buying binary number o1o1
Sol Weinberg
Sol Weinberg Dec 04, 2021 8:06AM ET
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GARBAGE
jason xx
jason xx Dec 04, 2021 6:28AM ET
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Rigged no wonder SEC won't allow a btc etf.
Show previous replies (1)
Money Hungry
Money Hungry Dec 04, 2021 6:28AM ET
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SEC is a scam
Ronald Warren
Ronald Warren Dec 04, 2021 6:28AM ET
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Money Hungry Cryptos are the scam.
taylor jason
taylor jason Dec 04, 2021 6:28AM ET
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bitcoin ETF was approved earlier this year. it's ticker is BITO. those who don't understand blockchain technology are quick to call "scam", but the truth is, they just don't understand it
Tom Sc
Tom Sc Dec 04, 2021 6:28AM ET
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new technology is supposed to improve my life in some way......no one can tell me how blockchain improves my life yet they act like this is the best technological discovery since whatever.
Peter ONeill
Peter ONeill Dec 04, 2021 6:28AM ET
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taylor jason  A lot do understand it. They just know governments and the main banks for various reasons do not want an unregulated global currency in the medium / long term. The Fed could wipe out Bitcoin with the stroke of a pen. The only reason it doesn't is it sees some small value in speculative trading.  India / China / Russia have already made cryptocurrency trading illegal...My guess is within 5 years you will have a Fed-backed / Main Banks coming together to create a Digital currency which will replace a lot of the Bitcoin market. China, BOE, the ECB etc are all already working on regulated and state-backed cryptocurrencies...
 
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