There was blood in the streets of the global crypto markets today, December 22nd, as investors woke up to virtually the entire top 100 cryptocurrencies by market capitalization being down by double-digit percentage points.
For now, in the absence of any terrible regulatory updates, the current market slide has nothing to do with any apparent news development. This particular retracement seems readily market-driven, but at present there’s only speculation in the community as to what cause or causes engendered the bleed-out.
The bitcoin price fell below $12,000 USD briefly — a far cry from the $19,000 it eclipsed just days ago.
But the sell-off struck the entire crypto market, indeed. Besides one or two coins, every project in the top 100 is majorly down.
And as you can imagine, everyone’s wondering why?
Theories abound of course — between hedge funds playing shorting games and new investors getting shaken out from their first major retracement — but what is clear is that the volume and price falls have been largely driven by North American investors.
Peruse CoinMarketCap’s “markets” tab for many coins and you’ll see that prices are considerably higher in Asian exchanges than they are in Western ones. Alas, the girth of the selling has been taking place in the West.
For example, if you can believe it, ether (ETH) is selling not too far under $900 at press time in the South Korean exchange Bithumb. So there definitely seems to be a continental divide: the West got acutely spooked, while South Korean buyers in particular haven’t been deterred.
Are we entering bearish days? It’s certainly possible, as most cryptocurrencies fell through major resistance lines in the bleed-out.
TLDR: The cryptocurrency market was just gouged, as many coins lost over 20 percent of their value overnight. The shake-out was market-driven, not news-driven.