- The flash crash was triggered by fake news about the alleged sale of 9,800 BTC by the US government.
- The crowding of the Bitcoin and Ethereum blockchains has caused uncertainty in the cryptocurrency market.
- Unconfirmed rumors have been circulating regarding Binance US and Grayscale.
The last deep decline of bitcoin It is not without its complexities. While the good news on Wednesday, May 10th about continued fall CPI It sent Bitcoin price to $28,317 as fake news about the alleged sale of 9,800 BTC by the US government hit the market, causing a rapid crash from which it has yet to recover.
Uncertainty and a bearish pattern is fueling the bitcoin market dump
Uncertainty is currently rising in the bitcoin and cryptocurrency market, with the DXY index hovering above the historically crucial support level of 101.8.
Jump and Jane Street’s departure from the US cryptocurrency market due to regulatory uncertainty has made the Liquidity worse problem. This, in turn, has led to higher volatility as larger buy and sell orders move the market faster.
Adding to the uncertainty is bearish A head and shoulders pattern on the daily chart of Bitcoin, which is causing concerns among traders that it might signal a breakdown towards $25,000.
Bitcoin Blockchain Congestion and Grayscale Debt Rumors
The turbulent environment surrounding Bitcoin is further complicated by the blockage of the blockchain due to the influx of Ordinals and the controversial BRC-20 meme coins. Part of the community views these coins as a distributed denial-of-service (DDoS) attack, which adds to the uncertainty.
Meanwhile, Grayscale is being hotly debated because DCG is supposed to owe bankrupt crypto lender Genesis Trading about $575 million in May, with the loans due next week. The rumor He says That Grayscale might be selling something on it Coinbase To cover the capital needed to repay the loan.
At the time of writing, bitcoin price is at $26,340, initially receiving support from the 100-day moving average. popularity Bitcoin order Transactions are declining, with turnover Projection for three consecutive days after reaching an all-time high of $18.13 million on May 8th.
on the flip side
- Departure of the United States Market makers Jump and Jane Street could lead to more decentralization and ultimately a stronger crypto market.
- Bitcoin congestion and Ethereum Blockchains highlight the need for continuous development of scaling solutions.
- The decline in the popularity of Bitcoin Ordinals transactions indicates a shift towards more sustainable and efficient transaction methods.
Why should you bother
Each of the factors driving the current downturn in the cryptocurrency market has the potential to have long-term effects on the industry. The departure of major market makers, regulatory uncertainty, and crowding on the blockchain contribute to the current volatility.
For more on how the upcoming US CPI data will affect the bitcoin market rally, check out this article:
Understanding the upcoming US CPI data amid a $27.5K increase in Bitcoin
For insights into the recent clash between Ripple CEO Brad Garlinghouse and the Venture Capitalist over the security state of XRPread this article:
Garlinghouse disagrees with Venture Capitalist on the security situation for XRP