By Hassan Mehmood (Saudi Arabia)
Bitcoin has dropped by over 4% in the past 24-hours. The downtrend in the cryptocurrency markets is tied to the negative trend in traditional markets.
In just 24-hours, the market cap of crypto markets has lost more than $7 billion, which is not healthy for Bitcoin as well as other altcoins.
The data shows that exchange deposits by whales are increasing in their numbers since September 17, claims CryptoQuant CEO Ki Young Ju. The capital inflow towards cryptocurrency exchanges is putting a lot of selling pressure on Bitcoin and other major coins. A metric is introduced by CryptoQuant which determines the ratio between Whales deposits on exchanges and the rest of the coming transactions on the platforms. CryptoQuant CEO said:
“Exchange Whale Ratio is the relative size of the top 10 inflows to total inflows by day of each exchange. I used the weighted average for all exchanges.”
The equity markets of the US also behave in a downward direction as Dow is down by more than 600%. Bank stocks also suffered a lot because leaked FinCEN documents unveiled the involvement of major banks in illicit activities such as money laundering. Similarly, gold following other assets also plunged by 2%.
Not only Bitcoin suffer a lot in the daily run but the majority of the altcoins are also suffering greater losses. Ethereum has decreased by almost 9%. In the top 20 coins, Polkadot, Binance Coin, Chainlink, and Cardano have plunged by more than 10%.
The DeFi coins are also showing a clear negative trend as yearn.finance has decreased by nearly 25% in the 24-hours.
Coronavirus Cases are Surging
According to many analysts, Coronavirus is the major reason behind the dumping of stocks and digital assets. Edward Maya of OANDA said:
“Global stock markets are tumbling as coronavirus cases surge in Europe, political tensions in the US will likely derail any further fiscal support efforts.”
“Surging coronavirus cases and doubts over the next over the next round of fiscal support is triggering a wide range risk averse tone that is sending the dollar higher and sinking gold,” Maya added.
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