The currency dropped below $62K before it rebounded

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Bitcoin (BTC) and the broader cryptocurrency market fell nearly 10% on Saturday, with the price of the largest digital asset briefly falling below $62,000 before recovering to around $64,000 as of press time.
It wasn’t alone: other major digital assets saw similar falls over the past 24 hours, including ether (ETH), which fell 7% to just under $3,000, BNB (BNB) (down 9%) and solana (SOL) (down 12%), according to CoinGecko.
Trading volume has risen over that same time period.
The decentralized finance (DeFi) sector has been hit particularly hard as a result of the market chaos, with depressed prices forcing liquidations and raising the potential of havoc for some protocols.
Among the protocols being closely watched is Ethena, the buzzy Ethereum project behind USDe, a “synthetic dollar” built to mirror the price of the US dollar.
Ethena has attracted more than $2 billion in deposits, but it uses a controversial method for maintaining USDe’s one-dollar “peg” that hasn’t been tested under such adverse market conditions.
Lower liquidity would lead to lower prices, he said.
Crypto market prices began to recover after the X (formerly Twitter) account associated with Iran’s Permanent Mission to the United Nations said “the matter can be deemed concluded,” though it warned of a “considerably more severe” attack “should the Israeli regime make another mistake.”

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With the price of the biggest digital asset briefly dropping below $62,000 before rising to about $64,000 as of press time, Bitcoin (BTC) and the cryptocurrency market as a whole saw a nearly 10% decline on Saturday.

Not only that, but over the last day, other significant digital assets also experienced comparable declines, as reported by CoinGecko. These included ether (ETH), which dropped 7% to just under $3,000, BNB (BNB), which dropped 9%, and solana (SOL), which dropped 12%. During that same time frame, trading volume has increased.

The market chaos has had a particularly negative impact on the decentralized finance (DeFi) sector, as low prices have forced liquidations and increased the risk of chaos for certain protocols.

Ethena, the popular Ethereum project that created USDe, a “synthetic dollar” designed to mimic the value of the US dollar, is one of the protocols that is being closely observed. Although Ethena has drawn deposits totaling over $2 billion, it maintains the USDe’s one-dollar “peg” through a contentious approach that hasn’t been put to the test in such unfavorable market circumstances.

The exact reason behind Saturday’s market losses was unclear, but former BitMEX CEO Arthur Hayes predicted in a blog post last week that dollar liquidity would decline just before U.S. taxpayers’ tax payments are due. S. on Monday, April 15, which is this coming week. He stated that reduced liquidity would result in decreased prices.

Along with the declines, Iran launched drone and missile strikes against Israel, claiming that it was retaliating for an Israeli-attributed airstrike on its consulate in Damascus, Syria.

After the Iranian Permanent Mission to the UN’s X (formerly Twitter) account declared that “the matter can be deemed concluded,” but also threatened to launch a “considerably more severe” attack “should the Israeli regime make another mistake,” cryptocurrency prices started to rise again. ****.

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