Here’s why Bitcoin, Ethereum and Altcoins are falling sharply

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The crypto market crashed on Saturday, with the global market capitalization dropping 5% to $1.05 trillion in the past 24 hours. The total liquidation stands at $350 million in the last 24 hours, with over 170,000 traders being liquidated. The largest single liquidation occurred on crypto exchange OKX, with ETH-USD-SWAP valued at $2.18 million.

Bitcoin price drops 5%, with a major drop in just 2 hours. The price of BTC fell to a 24-hour low of $25,500. Bitcoin is currently trading near $25,600, with a high probability of falling below the $25,000 level.

Ethereum price fell 4%, with 24-hour lows and highs of $1,765 and $1,854. ETH price is currently trading below $1750. Selling pressure continues to build as trading volumes increase.

Altcoins such as Filecoin, Polygon, Cardano, Solana, Chiliz, Sandbox, Decentraland, Axie Infinity and others fell over 20%. Shiba Inu (SHIB) led the crypto market crash, dropping 30% in the past 24 hours. Some down buys are also recorded.

Also read: Binance will temporarily suspend all crypto margins and gain related services

Reasons Behind Crypto Market Crash

Major liquidations have been recorded in the cryptocurrencies mentioned in the US SEC lawsuits against Coinbase and Binance. However, the massive sell-off came in response to Binance.US halting USD fiat support on the exchange and Robinhood delisting Solana (SOL), Cardano (ADA), and Polygon (MATIC).

The US SEC listed BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI as securities in the Binance lawsuit. The agency listed SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO as securities in the Coinbase lawsuit.

According to Coinglass, over $300 million in longs and $25 million in shorts have been liquidated in the last 24 hours. Liquidations mostly occurred on Binance, OKX, and Bybit, with BTC ($47m), ETH ($38m), ADA ($15m), SOL ($14m), DOGE ($11m). million), LTC ($11 million), FIL ($9 million) and MATIC ($8 million).

Liquidation of the crypto market. Source: Coinglass

Grayscale Investments has also filed a request with the US SEC requesting the withdrawal of the registration statement of trusts on Form 10 for Grayscale Filecoin Trust. SEC staff continue to view Filecoin (FIL) as a security. However, Grayscale says it will continue to believe that FIL is not a security.

Market makers such as Jump Crypto and Cumberland have pulled all liquidity from altcoins. Market makers have been caught dumping major cryptocurrencies on Binance and Coinbase exchanges. Binance.US partners are reluctant to work with the exchange, causing a sell-off in the market.

Additionally, over 4 trillion Shiba Inu Tokens (SHIB) worth millions have been transferred from Shiba Staking to the Binance crypto exchange. This triggered a sell-off in SHIB and BONE prices.

Scimitar Capital, the hedge fund believed to be behind the massive $2 billion altcoin selloff, said:

Our fund made the strategic decision to liquidate our crypto holdings and return capital to our esteemed LPs. We believe this move will bring increased stability and opportunity.

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