Bitcoin and Ethereum Experience a Dip
Bitcoin and Ethereum witnessed a decline on Monday, with Bitcoin dropping below $41,000 and Ethereum falling below $2,200. Bitcoin is currently trading at $40,758, down 7% in the past day. The market also saw $330 million in crypto futures contracts liquidated as BTC fell below $43,000. Total liquidations have now reached $516 million. However, despite the dip, Bitcoin is still 5% higher than it was at the start of the month when it was priced at $38,688. Similarly, Ethereum has lost 7% since yesterday but remains 7% higher than its starting price this month.
Global Crypto Market Capitalization Takes a Hit
The global crypto market capitalization, which has been around $1 trillion for most of the year, now sits at $1.6 trillion after a 6% decrease from yesterday. Altcoins in the market have also been affected by the decline. ORDI has slumped 14% in the past day after experiencing explosive growth last week, while Pepecoin has fallen 13%. However, some altcoins have seen positive developments. Solana and Avalanche attracted $5 million worth of deposits from institutional investors last week, and Immutable gained 10% despite most gaming tokens going down.
BUSD Loses Peg as Binance Delists Margin Trading and Futures Contracts
Binance USD (BUSD), a dollar-pegged stablecoin, temporarily lost its peg on Monday when it dropped to as low as $0.97. This occurred because most BUSD margin trading and futures contracts were automatically closed on that day. BUSD has been declining since the SEC sent a Wells Notice to Paxos, which handled minting and redemptions of BUSD for Binance. Paxos and Binance have announced that users can continue to redeem their tokens until February 2024. Any unredeemed BUSD tokens will be automatically converted to FDUSD, a stablecoin issued by FD121 Ltd.
Hot Take: Market Correction Hits Bitcoin and Altcoins
The recent decline in Bitcoin and altcoin prices indicates a market correction after a prolonged period of growth. While it may be disheartening to see the value of your crypto investments decrease, it’s important to remember that volatility is inherent in the cryptocurrency market. Prices can fluctuate rapidly, and it’s crucial to make informed decisions based on thorough research and analysis. Additionally, market corrections can provide buying opportunities for those looking to enter or expand their positions in cryptocurrencies. Stay updated with the latest market trends and news to navigate these fluctuations effectively.
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