Saturday, December 4, 2021, was a tough day for most crypto holders as they witnessed their beloved digital currencies shed a lot of value in just a few hours. Not that this was unexpected, after all, volatility is the name of the game.
Basically, here is what happened:
- Bitcoin lost over 20% or 1/5 of its value in the course of the day
- BTC hit below $42, 000, the lowest point in weeks, after hitting ATH of $69, 000 not long ago on 10th November 2021
- ETH was reported to have lost 10% of its value during the same day
- Market cap of coins listed on CoinGecko plummeted by about 15% during the day, hitting $2.34 trillion
Saturday’s sharp drop reportedly follows a tough week for financial markets in the United States.
According to a Reuters report, global equities and benchmark U.S. bond yields tumbled on Friday, December 3, 2021, after government reports showed that jobs growth had slowed in November 2021.
The markets were also triggered by the Omicron variant of coronavirus that has caused panic among investors globally.
SEE ALSO: Bitcoin, Ethereum Hit All-Time Highs
With bitcoin seemingly unsettled by similar trends as the financial market, famous skeptic, Nassim Taleb, one again got fodder to attack the leading crypto:
Risky tech stocks were among the biggest losers on Wall Street on Friday, with Tesla shedding 6%. The ARK Innovation fund lost 5% on Friday and 12% on the week. This likely translated to a bearish landscape over to the crypto sphere.
For some, such as Binance’s billionaire founder, the bear market is yet another opportunity to buy the dip.
Interestingly, ETH continues to gain growth and traction.
As of this writing, the price of ETH now needs to just grow by 1.88x to flip bitcoin. This is the closest we have come to a flip.