As of writing this copy at around 1:58 pm (IST) sell off in crypto space has heightened with major cryptos as compiled by Coindesk.com all knocked down in the range of 13 percent to 26 percent. Bitcoin - the most popular and largest crypto by market cap tumbled to a 24 hour low price of $42020, while at this hour was down by over 15 percent at $47,825.
Considering the last close the bitcoin has shed a huge $8725 in a day's time. This is the biggest one-day drag on the popular crypto since May 15 when bitcoin prices temporarily went down to near $33000.
On a YTD basis while the token has yielded gains to the tune of 62 percent, it is considerably down from its peak level of $69,000 reached on November 10, 2021.
Reasons for the sharp sell-off in Cryptocurrencies on Saturday (December 4, 2021)
As per ByBit data, the market of Bitcoin witnessed $1.38 billion liquidation in an hour, with $735M liquidated in bitcoins longs on this sudden sharp fall. Consequently, bitcoin bears took hold and offset the 2-month long bulls.
Omicron and US Fed's earlier asset tapering plan can be the other 2 probable reasons weiging on the market. The deep plunge in the cryptospace is also an indication of risk-off sentiment gripping the financial world.