{"id":6393,"date":"2021-02-23T01:40:00","date_gmt":"2021-02-23T01:40:00","guid":{"rendered":"https:\/\/cointelegraph.com\/news\/altcoins-and-defi-sell-off-after-bitcoin-s-17-6-correction-below-50k"},"modified":"2021-02-23T01:40:00","modified_gmt":"2021-02-23T01:40:00","slug":"altcoins-and-defi-sell-off-after-bitcoins-17-6-correction-below-50k","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/altcoins-and-defi-sell-off-after-bitcoins-17-6-correction-below-50k\/","title":{"rendered":"Altcoins and DeFi sell-off after Bitcoin\u2019s 17.6% correction below $50K"},"content":{"rendered":"

In the early morning trading hours Bitcoin (BTC<\/a>) price abruptly dropped by 17.65%<\/a> which triggered a major downturn throughout the entire market.<\/p>\n

Data from Cointelegraph Markets<\/a> and TradingView<\/a> shows that Bitcoin decreased from a high of $58,274 on Feb. 21 to a low of $47,622 during the early hours on Monday before buyers returned to lift BTC to its current value of $53,350. <\/p>\n

Daily cryptocurrency market performance. Source: <\/em>Coin360<\/em><\/a><\/figcaption><\/figure>\n

Despite today\u2019s $1.6 billion liquidation event, Bitcoin bulls remain optimistic about the future of the top cryptocurrency with key indicators suggesting that those buying today\u2019s dip are likely to come out on top<\/a>. <\/p>\n

According to ExoAlpha Chief Investment Officer David Lifchitz, recent charts for Bitcoin looked overbought, signaling that a “15% correction could happen\u201d as part of a normal market cycle before BTC attempts to break out to new highs. <\/p>\n

Bitcoin went from $10,000 in October 2020 to almost $60,000 in just 4 months, indicating to Lifchitz that a \u201cpause\/mild-correction is definitely in the cards.\u201d<\/p>\n

Lifchitz said: <\/p>\n

$50,000 looks like the first stop for a mild pullback but a second leg down could take it down to $40,000 while the $30,000 zone looks like the ultimate bottom should things turn ugly in the short term.\u201d<\/p><\/blockquote>\n

BTC\/USDT 4-hour chart. Source: <\/em>TradingView<\/em><\/a><\/figcaption><\/figure>\n

Recent money printing by central banks makes it less likely that BTC will drop as low as $30,000, according to Lifchitz, as Bitcoin is increasingly being seen as a hedge against currency devaluation by investors around the world. <\/p>\n

Lifchitz also pointed out the recent moves in traditional assets such as the U.S. 10 year treasury yield could \u201ctrigger a pullback in Bitcoin as a general deleveraging move across asset classes,\u201d but only \u201ctime will tell\u201d how it all plays out. <\/p>\n

Rising yields put pressure on equities<\/h2>\n

Traditional markets were mixed on Feb. 22 as recent increases in Treasury yields led to expectations of higher inflation and put additional pressure on equities.<\/p>\n

The Dow was able to overcome early pressure to close the day up 0.09% while the S&P 500 and NASDAQ traded in the red all day and closed down 0.77% and 2.46% respectively. <\/p>\n

Commodities proved to be the bright spot in markets on Monday, with the price of crude oil increasing by 4.14% to trade at $61.69.  Gold price increased by 1.68% and close the day at $1,807. <\/p>\n

Staking announcements and protocol upgrades send select tokens higher<\/h2>\n

Despite the market-wide downturn for the crypto community, several tokens saw their prices increase on Monday as positive developments helped elevate them above the negative sentiment. <\/p>\n

The breakout star over the past 24-hours has been Crypto.com Coin (CRO<\/a>), whose price exploded by more than 63% to establish a new all-time high of $0.2748 during early trading hours. <\/p>\n

Other notable performances include NEM (XEM<\/a>), which is up 16.05%, and Solana (SOL), which has increased by 20.54%. <\/p>\n

BTC\/USD daily chart. Source: <\/em>Coin360<\/em><\/a><\/figcaption><\/figure>\n

The overall cryptocurrency market cap now stands at $1.63 trillion and Bitcoin\u2019s dominance rate is 61.2%.<\/p>\n

Source: COINTELEGRAPH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In the early morning trading hours Bitcoin (BTC) price abruptly dropped by 17.65% which triggered a major downturn throughout the entire market. Data from Cointelegraph Markets and TradingView shows that Bitcoin decreased from a high of $58,274 on Feb. 21 to a low of $47,622 during the early hours on Monday before buyers returned to…<\/p>\n","protected":false},"author":1,"featured_media":6394,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55],"tags":[131,441,521,95,442,443,573,547],"class_list":["post-6393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-crypto-news","tag-bitcoin-price","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-defi","tag-market-update","tag-markets","tag-nem","tag-solana"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/6393"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=6393"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/6393\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/6394"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=6393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=6393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=6393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}