Looking at historical data, the crypto market tends to see price drops over the weekends. As another weekend approaches, market volatility is starting to show signs of selling again. Bitcoin and major altcoins do not see a big drop or increase. Bitcoin (BTC) is trading at $33,624, while the overall cryptocurrency market value is around $1.46 trillion.
What are the reasons behind the decline of the bitcoin and altcoin market over the weekend?
Market experts believe there are numerous reasons for the regular pattern of weekend sales. Low trading volumes often create selling pressure, but a recovery is followed by late Sunday as Asian markets open.
Margin trading is one of the main reasons behind price fluctuations, where on the weekends traders borrow money from exchanges to trade with high leverage. If the price of the coin falls below the margin call, exchanges are forced to sell the coins of traders who cannot repay the loan. This created additional selling pressure that led to volatility over the weekend.
Cryptocurrency market lost $120 billion in two days
The crypto market has lost a total of $120 billion over the past two days as sales continue among investors. The price of Bitcoin (BTC) has dropped below the $33,000 support. However, at the time of writing, it has rebounded above $33,000. Cryptocoin. com
As we reported as , the largest cryptocurrency by market capitalization managed to break the key resistance of $ 36 thousand last weekend, but could not consolidate its position and fell below $ 35 thousand shortly after.
The second largest cryptocurrency Ethereum (ETH) started the week with a new weekly high above $2,400. However, it briefly dropped below $2,100. However, it is now trading above the key $2,000 support level. Apart from the top two cryptocurrencies Bitcoin and Ethereum; Most of the major altcoins such as Litecoin (LTC), XRP, Cardano (ADA), Solana (SOL) have not experienced a strong rise.