The crypto market crashed Wednesday night, wiping away the gains of the previous 24 hours in less than one hour.
Coinmarketcap data, which tracks performance in the wider crypto market, has fallen 6% within an hour. It is now trading 2% below where it was 24hrs ago. Bitcoin, the biggest cryptocurrency by market value, traded recently at around $28,900. It surpassed the $30K high of early Wednesday. BTC dropped to $27.264 in the afternoon.
In the past 24 hours, 79.038 traders have been liquidated. This totals $352.78 millions.
Bitcoin prices dropped from their April 14th highs. It started to rise sharply after the recovery and is now trading in the $28,500 area of resistance.
BTC’s rally may accelerate above $31,800 if this breakout occurs. Ether has recently fallen slightly, trading at $1.855. Market value of the second largest cryptocurrency soared to $1984 before dropping to $1789 in the afternoon on Wednesday. This is the lowest value since early April.
According to a Standard Chartered Bank research report, the crypto winter has ended and Bitcoin (BTC), which is the largest cryptocurrency in the world, could reach $100,000 before the end of this year.
Standard Chartered predicts that Bitcoin’s value will rise between 50-60%. According to data from Coinmarketcap, the most popular cryptocurrency asset currently has a market share of 47%. The market share was about 40% when the Silicon Valley Bank failed in mid-March.
The recent banking crisis, which helped to’restore Bitcoin’s use as a scarce decentralized digital asset’, could have contributed to the surge of $100,000. In a Monday report, the bank stated that it believed Bitcoin was a decentralized scarce digital asset.
Jeff Kendrick is a financial analyst who also predicted that Bitcoin would benefit from its reputation as an alternative remittance system, relative store of wealth, and safe haven. Bitcoin’s value has increased by 67% in the past year and it crossed the $30,000 threshold last week for the first time since almost a full year.
According to the research, the price of $100,000 is also influenced by the macroeconomic climate for riskier assets which is improving as the Federal Reserve nears the end of their tightening cycle.
Kendrick also highlighted that Bitcoin would benefit from the impending halves (a process where the reward for mining new blocks is halved each four years). He said that cyclical factors will be more advantageous as the time gets closer.
Kendrick believes that Bitcoin can perform well when other assets underperform, but the Nasdaq and Bitcoin association shows this isn’t always the case. This implies that BTC is likely to trade more favourably.