Binance the world’s biggest cryptocurrency exchange and Coinbase the most valuable crypto exchange suffered had service breakdowns largely responsible for Bitcoin plunging the most since 2013.
Investors’ outrage began when the world’s biggest crypto exchange, suspended Ethereum withdrawals citing network congestion coupled with Coinbase, Gemini, Kraken suffering some service disruptions as crypto assets tumble.
Crypto exchanges are the most used platforms by many investors mainly to buy and sell their digital assets amid the decentralized nature of these financial instruments, yet more often go offline, when the traffic on the blockchain increases exponentially, leading the same market critics to call for more sustainable platforms, as these triggered the flagship crypto in losing as much as $10,000 within few hours.
The number of liquidations recorded yesterday was unprecedented because a lot of investors became very vulnerable and couldn’t control their assets, taking to account some of them borrowed money in magnifying their returns, with such price volatility taking the centre stage about 800,000 investors had their accounts liquidated, equating to $9 billion worth of crypto assets.
Its critical to also understand the crypto market is still in a new financial market, thus remains in the price discovery period, which often experiences the most volatile cycle as the path to true price discovery is often fraught with seismic volatility which often distort prices at record levels.
Consequently, some wealthy investors including Justin Sun the founder of TRON, recently disclosed he bought over $150 million worth of Bitcoins amid recent pullbacks in the world’s most popular crypto asset.
In addition, market pundits anticipate ‘the greatest wealth transfer in modern time with Bitcoin gaining as much as $10,000 within four hours after falling as low as $30,000 on Tuesday.
Strong support from arguable the most influential billionaire in the Crypto verse gave support to the flagship Crypto with Elon Musk, restated that Tesla had diamond hands, implying that they haven’t sold their Bitcoin positions.
As the Crypto market recovered some of its worst crashes in history, sentiment from large institutional still remains overwhelmingly high with such high price swings giving them an ample opportunity to increase their stakes on the ever-changing financial asset class.
Furthermore, Michael Saylor, the founder of MicroStrategy, revealed entities under his control have now acquired a whooping 111,000 Bitcoin and have not sold a single satoshi.
This article was originally posted on FX Empire
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