Crypto Market Loses $65 billion In 24 hours As Bitcoin Dips Below $17k

News / 26.11.2020

The long-awaited dump happened today, as leading coin Bitcoin suffered a major dip that crashed the market. This downward movement affected all the leading coins, with Ethereum and Ripple losing 14% and 20% in value, respectively.

Bitcoin drops below $17,000

Before this latest crash, Bitcoin had entered a fairly stable phase after seven consecutive weeks of linear increase. There had been expectations from traders that the coin could hit the $20,000 mark this week, but this changed in today’s early hours.

Bitcoin initially dropped from $19,300 to $18,300 before dipping below its support at $17,000 and hitting fresh lows of $16,500. This crash was the steepest experienced by the coin since early March.

As expected, the crypto market followed suit, with most coins posting losses today. The total market cap has also reduced by $60 billion from its 2020 record high of $565 billion recorded yesterday. At the time of publication, Bitcoin has recovered slightly with its price at $17,300, and its market dominance has increased to 62.5%.

Traders Lose $1.9 billion on Exchanges.

The top 10 coins by marketcap are in double-digit losses, and several crypto accounts were liquidated in the past 24 hours.   According to a chart posted by crypto trader Larry Cermak on Twitter, nearly $1.9 billion was liquidated due to the dump. Binance ($830 million) led the list, followed by Huobi ($441 million) and OKEx ($241 million).

Bitcoin’s drop in price has led to several speculations from the crypto community regarding the cause of the dump. There have been some traders that attribute the loss to the Thanksgiving and Black Friday holiday. It is typically a period where traders withdraw their assets and are marked with increased volatility.

OKEx resumption of withdrawals could also be a cause for the dip in price. The leading futures exchange suspended withdrawals for more than a month. Ki Young Ju, the founder of the on-chain analytics service CryptoQuant, highlighted increased outflow activity from OKEx to both wallets and other exchanges.

Olowoporoku Adeniyi is a blockchain enthusiast and crypto evangelist. Currently he loves all things crypto and covers happenings within the blockchain space.