BTC Drops 9%, ETH 8% Down in Saturday Morning Fall
The overall crypto market has plunged by around 10% in the last 24 hours.
Bitcoin had it hard in the Saturday morning trading session as the leading cryptocurrencies declined to $30,194 (CoinGecko stats). While writing this report, Bitcoin trades at $30,884, translating to an 8.8% drop since yesterday.
Most altcoins dropped following BTC’s fall. ETH, the world’s best alternative coin, plunged at the start of the weekend. Ethereum declined by 8% to trade to a low of $1,718 before recovering to trade at $1,772 at the moment. With such moves, the second-largest digital asset remains down by 7.9% since yesterday and 21% dip since last week.
Since most cryptocurrencies have shown a high correlation with the leading coin recently, they saw plummets after BTC lost its value. Other top coins that dropped following the losses by the two leading cryptocurrencies include Binance Coin (6.8% drop), Cardano (7.5% decline), Dogecoin (7.8% plunge), and Polkadot (8.7% loss).
As a result, the overall cryptocurrency market lost 10%, valuing at $1.29 trillion at the moment.
What Caused the Market Crash?
By now, the weekend has proven to be highly volatile since institutional crypto investors who stabilize the market against wild fluctuations are in their leisure times.
However, as always, analysts had something to say. Some suggest the market disruption comes from the Ethereum and Bitcoin options contracts expiries. The options contracts worth $3.8 billion, signed several months ago, allow buyers to redeem all their cryptocurrencies. After that, they are free to dump them on the financial market of their choice.
Yesterday, CryptoQuant CEO Ki-Young Ju said that the ETH options expiry caused volatility since it is the largest in Ethereum history. Keep in mind that his firm provides investors with cryptocurrency data.
Now, what holds the future? Today, QCP Capital, a cryptocurrency investment company based in Singapore, predicted that BTC would recover to $39,400 soon. Also, the firm sees Ethereum reclaiming its $2,550 highs. However, a BTC futures market Deribit remains less optimistic about the future of the two assets. Some market players in that particular market see Bitcoin at $33,220 in a year to come.
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