Major coins traded mixed on Wednesday after blockchain analytics firm Arkham Intelligence denied playing a role in the flash crash that saw major cryptocurrencies tumbling.
| Cryptocurrency | Gains (+/-) | Price (Recorded 9:30 p.m. EST) |
| Bitcoin BTC/USD | +2.13% | $28,919 |
| Ethereum ETH/USD | +2.05% | $1,906 |
| Dogecoin DOGE/USD | -0.52% | $0.079 |
What Happened: According to the latest data from Coinglass, traders were hit hard with approximately $310 million in losses due to rapid liquidations in the past 24 hours.
At the time of writing, the global crypto market capitalization stood at $1.20 trillion, an increase of 1.21% over the last day.
The U.S. stock market saw a mixed session as the Big Tech earnings sparked excitement. While the S&P 500 experienced a decline of 0.38%, the tech-driven Nasdaq Composite managed to gain 0.47%.
See More: Best Crypto Day Trading Strategies
News Highlights: Bitcoin experienced a sharp decline of approximately 7% within an hour on Wednesday evening, plummeting from $29,850 to $27,789.
Several reports have attributed this rapid drop to an incorrect alert sent out by blockchain analytics company, Arkham Intelligence. According to the reports, the alert falsely claimed that large amounts of Bitcoin were being transferred to wallets linked to Mt. Gox and the U.S. government.
After initially acknowledging the mistake and attributing it to a bug fix, Arkham Intelligence later tweeted that their alerts were accurate in this particular instance.
Analyst Notes: “Banking jitters have revitalized life back into cryptos. Bitcoin is surging and so are all the major cryptos as banking stress supports the use case for digital assets. Bitcoin is still facing a ton of resistance and this current rally will likely struggle until we get a clearer regulatory framework for cryptos,” said Edward Moya, Senior Market Analyst at OANDA.
Macroeconomist Henrik Zeberg predicts that Bitcoin is poised to skyrocket this summer as worries over an impending recession gradually fade away. Zeberg, who commands a following of over 109,000 on Twitter, asserts that with the king crypto leading the way, risk assets like cryptocurrencies are set to soar in the coming months.
Based on Zeberg’s analysis, a “blow-off top” scenario is unfolding for both stocks and crypto, majorly spurred by a drop in fixed-income yields. Zeberg is of the view that the market rally will be driven by a significant decline in yields, while the economy will remain in the comfortable “Goldilocks zone.” Overall, the projection is that risk assets like Bitcoin will surge into the summer season.
Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users
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