Bitcoin and Ethereum prices stabilize after $ 480 billion crypto weekend erase

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(Kitco News) The crypto market appears to have stabilized after wiping out $ 480 billion in the weekend’s liquidation.

On Monday afternoon, bitcoin and ethereum were back in positive territory after major corrections that started on Friday and accelerated through Saturday.

At the time of writing, bitcoin was trading at $ 49,278.38, up 0.63% on the day, and ethereum at $ 4,296.21, up 4.07%. on the day. Looking at the technical charts, Ethereum recouped most of the weekend’s losses, while bitcoin barely managed to stabilize and had yet to cut its gains.

In the early hours of Saturday, bitcoin fell 20% in an hour and at one point traded below $ 47,000. Ethereum also fell below $ 4,000. This crypto volatility came after a hectic week in the US stock market.

This sell-off saw the overall crypto market capitalization fall from $ 2.8 trillion to $ 2.3 trillion. Less than a month ago, bitcoin was trading at its new all-time high of $ 69,000 per token as the overall crypto market cap crossed the $ 3 trillion mark.

The pullback in the crypto space could be linked to a further move away from riskier assets that traders have seen play in the equities space over the past week.

“It’s hard to beat crypto given the monster moves seen on Saturday. Our flow was centered on Bitcoin and Ethereum and it certainly came to life – perhaps not surprisingly in a high-low range of 20.3% – the third 20% daily range this year, “commented Chris Weston, research manager at Pepperstone. Calm returned to space after the fireworks display, but if anyone needed to convince that crypto is an amazing trading vehicle, then this move reminded us of it. If you like the move, Control the size of the position and are happy to trade long and short so this is the one where the cost movement is comparable to EURUSD and SpotCrude. ”

While Ethereum has recovered, bitcoin still appears vulnerable below the $ 50,000 level, said Craig Erlam, senior market analyst at OANDA. “Whatever the cause of the flash crash, it failed to fully reverse losses and remains below $ 50,000. This could make it vulnerable in the short term, especially since it is struggling to keep up. other risky instruments earlier in the day. Bad news about Omicron could really put it under pressure, ”Erlam said.

Weston has said he enjoys trading in ether as the world’s second largest cryptocurrency climbs back above $ 4,000. “Ethereum catches my eye with a price coming back into the 4800-4000 range – I like it in 4400, potentially square and inverted at the close up to 4000. Position sizing should be minimal considering the volume,” he noted.

Another positive news for ethereum on Monday was the launch of mini ether futures by CME Inc.

Many crypto supporters used this sale as an opportunity to buy the downside, including El Salvador. Salvadoran President Nayib Bukele tweeted that his country bought an additional 150 bitcoins during the massive sale. Since making bitcoin legal tender, El Salvador has purchased 1,370 bitcoins.

“El Salvador just bought the dip! 150 pieces at an average USD price of around $ 48,670,” Bukele tweeted.

El Salvador just bought the dip! ????

150 coins at an average USD price of around $ 48,670 ?? #Bitcoin ??

– Nayib Bukele ???? (@nayibbukele) December 4, 2021

Bukele also struck a deadlock on Twitter with Peter Schiff, chief economist and global strategist at Euro Pacific Capital, over the role of gold and bitcoin in the country’s treasury reserves.

Nothing.

We are already in the green since our last purchase, in less than 24 hours.

You know boomer, we have 44,106 ounces of gold in our reserves.

Valued at $ 79 million, down 0.37% from a year ago.

If we had sold it a year ago and bought #Bitcoin, it would now be valued at $ 204 million. https://t.co/e5z9cVsfjg

– Nayib Bukele ???? (@nayibbukele) December 4, 2021

The exchange was sparked by Schiff’s response to Bukele’s purchase of the tweet. Schiff said: “There are a lot more cuts to come. How much taxpayer money do you intend to waste?”

Bukele replied that his country would have a lot more money if it sold all its gold reversals a year ago and bought bitcoin instead.

“You know, boomer, we have 44,106 ounces of gold in our reserves. Valued at $ 79 million, down 0.37% from a year ago. If we had sold it a year ago and bought #Bitcoin, it would now be valued at $ 204 million, “Bukele says.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.

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