Bitcoin and Ethereum Crash on Black Wednesday

Bitcoin dropped to $30,000 while ethereum saw a low of $1,800 from $3,500 the day before in one of the biggest crypto crash.

Doge fell to 22 cent before recovering to 40 cent with eth now at $2,750 while bitcoin nears $38,000.

The global crypto market cap fell to $1.58 trillion, a 24.37% decrease over the last day in this Black Wednesday with it slightly recovering to currently $1.67 trillion.

Numerous platforms had significant problems with Binance removing margins, Coinbase was inaccessible, Deribit, a leverage trading platform, suddenly announced when eth fell below $2,000:

“The platform is locked because admin is performing maintenance work. The admin will unlock the platform soon.”

The platform was unlocked and much went back to normal a few minutes after, but there has clearly been a very big longs cascade.

Ethereum fees for ordinary transactions reached 2,000 gwei, worth about $100 amid frenzied activity on the network.

That was in part because numerous contracts needed to be closed with $607.74m liquidated on defi platforms, of which Venus accounts for 39.18%, Aave V2 29.14%, and Compound 25.48%. DeFi’s single-day total lock-up amount fell 25% to $84.32b.

Funding on Deribit reached to ethereum shorts paying longs 1% for the first time as far as we have seen with eth losing more than half from a high of $4400 to the low of $1800.

There appears to be no direct cause of this. No news of such magnitude. A correction was expected however to about $2,500 for eth and plenty hoped $38,000 would almost certainly hold for bitcoin.

Yet sentiment has perhaps overshot a bit with Elon Musk tweeting after the crash that Tesla has diamond hands. Suggesting presumably that they have not sold.

It will now probably take some time to fully recover from this crash, but such corrections are not unusual during bull markets as sentiment waves.