{"id":126823,"date":"2021-05-29T07:56:30","date_gmt":"2021-05-29T07:56:30","guid":{"rendered":"https:\/\/precoinnews.com\/?p=126823"},"modified":"2021-05-29T07:56:30","modified_gmt":"2021-05-29T07:56:30","slug":"bitcoin-and-ethereum-crash-on-black-wednesday","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/bitcoin\/bitcoin-and-ethereum-crash-on-black-wednesday\/","title":{"rendered":"Bitcoin and Ethereum Crash on Black Wednesday"},"content":{"rendered":"
Bitcoin dropped to $30,000 while ethereum saw a low of $1,800 from $3,500 the day before in one of the biggest crypto crash.<\/p>\n
Doge fell to 22 cent before recovering to 40 cent with eth now at $2,750 while bitcoin nears $38,000.<\/p>\n
The global crypto market cap fell to $1.58 trillion, a 24.37% decrease over the last day in this Black Wednesday with it slightly recovering to currently $1.67 trillion.<\/p>\n
Numerous platforms had significant problems with Binance removing margins, Coinbase was inaccessible, Deribit, a leverage trading platform, suddenly announced when eth fell below $2,000:<\/p>\n
“The platform is locked because admin is performing maintenance work. The admin will unlock the platform soon.”<\/p>\n
The platform was unlocked and much went back to normal a few minutes after, but there has clearly been a very big longs cascade.<\/p>\n
Ethereum fees for ordinary transactions reached 2,000 gwei, worth about $100 amid frenzied activity on the network.<\/p>\n
That was in part because numerous contracts needed to be closed with $607.74m liquidated on defi platforms, of which Venus accounts for 39.18%, Aave V2 29.14%, and Compound 25.48%. DeFi’s single-day total lock-up amount fell 25% to $84.32b.<\/p>\n
Funding on Deribit reached to ethereum shorts paying longs 1% for the first time as far as we have seen with eth losing more than half from a high of $4400 to the low of $1800.<\/p>\n
There appears to be no direct cause of this. No news of such magnitude. A correction was expected however to about $2,500 for eth and plenty hoped $38,000 would almost certainly hold for bitcoin.<\/p>\n
Yet sentiment has perhaps overshot a bit with Elon Musk tweeting after the crash that Tesla has diamond hands. Suggesting presumably that they have not sold.<\/p>\n
It will now probably take some time to fully recover from this crash, but such corrections are not unusual during bull markets as sentiment waves.<\/p>\n