{"id":3743,"date":"2021-05-24T23:55:06","date_gmt":"2021-05-24T22:55:06","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=3743"},"modified":"2021-05-24T23:55:12","modified_gmt":"2021-05-24T22:55:12","slug":"bitcoin-and-ethereum-bounces-after-sudden","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/bitcoin-and-ethereum-bounces-after-sudden\/","title":{"rendered":"Bitcoin and Ethereum bounces after sudden drop resulting in over $14.2B losses"},"content":{"rendered":"\n
Bitcoin<\/a> price slightly tops $40,000 and Ether bounces above $2,600 as traders gain their composure following last week's “historic deleveraging event.”<\/h5>\n\n\n\n
\"Bitcoin<\/figure>\n\n\n\n

Today, traders were ecouraged by green markets as the majority of altcoins saw their prices bounce back following last week's downturn that was the \u201clargest deleveraging event since the March 2020 sell-off,\u201d according to an on-chain\u00a0report.\u00a0<\/p>\n\n\n\n

After suffering the\u00a0largest monthly price drop\u00a0in the history of Bitcoin trading, bulls now look to stage a comeback with a significant amount of support forming near the $37,000 level, and within the last hour, Bitcoin's price pushed up back to the $40,000 level.<\/p>\n\n\n\n

The capitulation experienced last week was \u201cone for the history books,\u201d with data from Glassnode showing that the magnitude of realized losses on-chain \u201ceclipsed all previous capitulation events\u201d with a new all-time high of $4.53 billion in losses recorded on May 19 and $14.2 billion recorded for the week as a whole.<\/p>\n\n\n\n

The $2.56 billion in net on-chain losses seen on May 19 was 185% larger than the March 2020 COVID-19 sell-off, with data indicating that:<\/p>\n\n\n\n

\u201cA large cross section of the market was taken <\/em>by surprise by this event.\u201d<\/p><\/blockquote>\n\n\n\n

Not all traders were caught off guard by the move, however, as BTC holders with coins 1 to 3 years old managed to spend their coins earlier in the cycle, \u201clikely rotating capital to capture the price out-performance of ETH at that time.\u201d These entities then stopped selling during the capitulation, while newer hands were seen panic-selling as they sprinted for the exits.<\/p>\n\n\n\n

Overall, last week's \u201chistorical capitulation event\u201d resulted in roughly 9% to 9.5% of the current market capitalization registering as unrealized losses, which is actually quite small when compared with previous losses seen in March 2020 and November 2018.<\/p>\n\n\n\n

Short-term holders have borne the brunt of the market turndown and \u201ccurrently hold aggregate unrealized loss of -33.8% of the Market Cap on their coins.\u201d<\/p>\n\n\n\n

Hard hit altcoins bounce back<\/h2>\n\n\n\n

May 24\u2019s price turnaround was a welcome sight for the altcoin market, which was hit especially hard during last week's sell-off.<\/p>\n\n\n\n

One of the biggest gainers on the day has been Polygon's MATIC, which continues to receive extra attention from the cryptocurrency community as it emerges as the preferred layer-two solution for the Ethereum network.<\/p>\n\n\n\n

The added focus led to a\u00a0100% increase in the price of MATIC\u00a0on May 24 from a low of $0.837 on May 23 to an intraday high at $1.67, while the Maker's\u00a0MKR\u00a0token likewise saw its price rally more than 100% to a high of $4,174.<\/p>\n\n\n\n

May 24's market turnaround also resulted in a 30% gain in the price of Ether (ETH\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>) back to the $2,500 support level, while Binance Coin (BNB<\/use><\/svg><\/span><\/a>) managed to gain 39% and now trades near $320.<\/p>\n\n\n\n

The overall cryptocurrency market cap now stands at $1.68 trillion, and Bitcoin\u2019s dominance rate is 44.2%.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin price slightly tops $40,000 and Ether bounces above $2,600 as traders gain their composure following last week’s “historic deleveraging event.” Today, traders were ecouraged by green markets as the majority of altcoins saw their prices bounce back following last week’s downturn that was the \u201clargest deleveraging event since the March 2020 sell-off,\u201d according to […]<\/p>\n","protected":false},"author":63,"featured_media":3745,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,83,23],"tags":[152,128],"class_list":["post-3743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-bitcoin-news","category-ethereum-news","tag-bitcoin","tag-ethereum"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/05\/download-4-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/3743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/63"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=3743"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/3743\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/3745"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=3743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=3743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=3743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}