Crypto volatility escalated on Saturday night, December 4. At the beginning of trading on the American market, the value of bitcoin (BTC) even grew moderately.
However, after the end of the session, a massive sale began on the spot exchanges. As a result, Bitcoin and Ether (ETH) fell below $ 45,000 and $ 3,600. The rebound occurred almost immediately, and on Sunday, the situation stabilized.
The biggest losses were suffered by Terra (LUNA) and Solana (SOL), having fallen in price by more than 14% and 9% to $ 63.4 and $ 181.2. Market capitalization fell to $ 2.2 trillion.
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The collapse in the cryptosphere was preceded by the withdrawal of capital from risky assets on Wall Street. The value of Tesla, for example, fell by 6% in the United States.
Analysts agree that the drop was the result of liquidations in the derivatives market. A similar situation was observed in September. However, there is no reason for panic, as at the beginning of autumn the market quickly recovered from losses and reached its maximum in October.
According to All-Star Charts' Jay Parents, we may see an aggressive trend return very soon. Will Clement of Blockware Solutions agreed with him and announced a new bull phase this year.