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Crypto Market Loses $400 Billion In A Day After Janet Yellen Warns Bitcoin Is ‘Extremely Inefficient’

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Crypto Market Loses $400 Billion In A Day After Janet Yellen's Warning On Bitcoin

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Bitcoin abruptly dropped from a high of $58k reached on Sunday to a value of $47k on Monday 22 February for one of its biggest-ever corrections in dollar terms, dragging the rest of the crypto market down with it. When the dust settled, Bitcoin initially rose back up to $53k but has since lost and overnight dropped back below $50k. As of publication, it is trading for $45k with the total crypto market valuation slipping from $1.7 trillion to $1.3 trillion in just a day.

Crypto Market Loses $400 Billion In A Day After Janet Yellen's Warning On Bitcoin
BTCUSD Chart Via TradingView

Altcoins sold off as in even bigger percentage points as the biggest cryptocurrency pulled everything down with it. Most commentators now agree that the comments made by new US Treasury Secretary Janet Yellen were the trigger that intensified the drop. On the other hand, crypto fans claim that such a correction was bound to happen sooner rather than later given the run-up in price witnessed over the past four months.

Over on Wall Street, the tech-heavy Nasdaq stock market dropped 2.46% altogether by the close on Monday. The only surprise risers were to be found in commodities, with both oil and gold trading higher.

Yellen and Roubini from the sidelines

Meanwhile, known crypto hater and New York University economics professor Nouriel Roubini gleefully retweeted a CNBC article that had copied some of his ideas of the past weeks as he had been warning about a possible bubble in both Bitcoin and tech stocks. With Bitcoin correcting and the Nasdaq dropping 2%, he felt vindicated.

But it was Janet Yellen, the newly appointed US Treasury Secretary, who said in an interview with the New York Times’s Dealbook that Bitcoin was ‘volatile’ and ‘inefficient’. Most market analysts now concede that it was Yellen’s words that speeded the drop of crypto markets yesterday.

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When asked about investing in Bitcoin, Yellen claimed that “People should beware it can be extremely volatile and I do worry about potential losses that investors could suffer.”

The former chairwoman of the Federal Reserve has a long history of being negative towards Bitcoin and other cryptocurrencies as they lessen the possible monopoly powers of central bankers.

“It’s an extremely inefficient way to conduct transactions,” Yellen added.

Crypto fans react

For many in the cryptosphere, Yellen’s comments were not all too surprising, but it at least made it clear where she stands.

Famed author Richard Kiyosaki, who wrote the bestselling Rich Dad Poor Dad, reacted to Yellen’s words with disbelief on Twitter. Kiyosaki saidSecretary Treasury Janet Yellen states: “Bitcoin is extremely inefficient.” Give me a break. Does she think printing trillions of fake dollars is efficient? Does she not know the more fake dollars she prints the more efficient and valuable Bitcoin becomes?


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DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/crypto-market-loses-400-billion-in-a-day-after-janet-yellen-warns-bitcoin-is-extremely-inefficient/

Blockchain

Déjà vu: Ethereum’s First Month of CME Futures Overwhelmingly Bearish

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Futures contracts allow institutional investors to hedge against future price movements of an asset with the possibility of shorting them. Just like with Bitcoin, the Chicago Mercantile Exchange launched its products when Ethereum was trading on its way to an all-time high.

It is unsurprising then that the first month of trading futures has been bearish as the asset’s price has retraced heavily and those shorting it on CME would have been correct to do so.

Déjà vu For Crypto Futures

CME launched its Ether futures on Feb. 8, and at the time the asset was trading at around $1,600. As reported by CryptoPotato at the time, a bearish reaction was expected.

Ethereum prices hit an all-time high of $2,050 on Feb. 21, but have corrected by 30% since then to today’s prices of around $1,450 – 10% lower than when the futures were launched.

ETH has underperformed BTC since the CME futures launch but a similar situation occurred with BTC, which underperformed ETH after its CME futures launch.

When Bitcoin futures were first launched in December 2017, the asset hit an all-time high a week or so later then pulled back heavily resulting in a similar effect on futures markets. Exactly the same has happened with Ethereum a little over three years later.

Of course, BTC has recovered and entered a new bull market and the same will happen with Ethereum regardless of how deep this correction goes.

In terms of volumes, the CME is reporting its highest ever day as Feb. 23 with 2,092 contracts traded. That volume has slumped to around 749 contracts on Feb. 26.

Longer-term contracts are likely to be bullish as the rollout of ETH 2.0 and the growth of staking opportunities is likely to push ETH prices to new highs whilst alleviating those epic transaction cost issues.

Ethereum Price Outlook

Currently, Ethereum has gained 4% on the day but has declined almost 30% since its peak last weekend. The asset fell to a monthly low of $1,300 on Feb. 28 but has since recovered a little to trade back over $1,400 again at the time of press.

There is strong support at current levels so ETH needs to remain above it to maintain the current momentum. A fall below could see ETH settle at just over $1,200 but a sustained move higher would need to see resistance at $1,600 broken again.

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Source: https://cryptopotato.com/deja-vu-ethereums-first-month-of-cme-futures-overwhelmingly-bearish/

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Blockchain

Kraken Daily Market Report for February 28 2021

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Overview


  • Total spot trading volume at $1.82 billion, down from the 30-day average of $2.06 billion.
  • Total futures notional at $594.6 million.
  • The top five traded coins were, respectively, Bitcoin, Ethereum, Cardano, Tether, and Polkadot.
  • Most coins had losses, but Storj ended +1.9% over USD.

February 28, 2021 
 $1.82B traded across all markets today
 Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD 
XBT 
$44187. 
↓4.0% 
$675.3M
ETH 
$1337.0 
↓8.0% 
$357.2M
ADA 
$1.2216 
↓7.1% 
$266.9M
USDT 
$1.0003 
↓0.06% 
$159.7M
DOT 
$30.816 
↓7.7% 
$76.2M
USDC 
$1.0000 
↑0.0% 
$26.0M
LTC 
$158.32 
↓7.7% 
$24.1M
XRP 
$0.4102 
↓5.8% 
$20.9M
LINK 
$23.667 
↓9.6% 
$19.5M
KSM 
$197.06 
↓14% 
$12.2M
XLM 
$0.3923 
↓10% 
$11.9M
XDG 
$0.0467 
↓6.5% 
$11.1M
BCH 
$445.77 
↓7.7% 
$9.05M
FLOW 
$20.565 
↓0.04% 
$8.9M
ALGO 
$0.9922 
↓9.4% 
$8.41M
GRT 
$1.4982 
↓11% 
$6.79M
UNI 
$21.239 
↓9.5% 
$6.4M
XMR 
$209.91 
↑0.2% 
$6.22M
XTZ 
$3.2894 
↓9.4% 
$5.84M
DAI 
$1.0014 
↓0.0% 
$5.46M
ATOM 
$17.059 
↓10% 
$5.25M
AAVE 
$309.75 
↓6.8% 
$5.13M
DASH 
$190.75 
↓9.4% 
$3.95M
FIL 
$35.897 
↓5.2% 
$3.37M
YFI 
$28850. 
↓8.1% 
$3.26M
EOS 
$3.3847 
↓7.7% 
$2.85M
TRX 
$0.0438 
↓5.6% 
$2.79M
ZEC 
$112.46 
↓6.1% 
$2.5M
SNX 
$16.848 
↓10% 
$2.34M
QTUM 
$4.7348 
↓10% 
$2.19M
ICX 
$1.3552 
↓11% 
$1.9M
BAT 
$0.4747 
↓7.6% 
$1.87M
SC 
$0.0090 
↓9.8% 
$1.74M
NANO 
$4.8697 
↓5.1% 
$1.6M
COMP 
$365.42 
↓8.5% 
$1.42M
CRV 
$1.6987 
↓13% 
$1.4M
WAVES 
$8.6036 
↓10% 
$1.37M
STORJ 
$0.6465 
↑1.9% 
$1.34M
OMG 
$4.0980 
↓8.4% 
$1.16M
OXT 
$0.4319 
↓7.4% 
$1.0M
ETC 
$10.078 
↓9.0% 
$866K
MANA 
$0.2276 
↓9.7% 
$845K
KAVA 
$3.1622 
↓14% 
$787K
LSK 
$2.6988 
↓12% 
$765K
KNC 
$1.5027 
↓11% 
$602K
ANT 
$3.6684 
↓13% 
$590K
GNO 
$117.07 
↓8.3% 
$533K
PAXG 
$1741.7 
↓0.3% 
$498K
KEEP 
$0.2902 
↓7.5% 
$457K
REP 
$29.205 
↓7.2% 
$413K
BAL 
$32.795 
↓11% 
$281K
MLN 
$35.873 
↓1.3% 
$217K
REPV2 
$24.055 
↓11% 
$115K
TBTC 
$47281. 
↓1.8% 
$51.9K


#####################. Trading Volume by Asset. ##########################################

Trading Volume by Asset


The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.

Figure 1: Largest trading assets: trading volume (measured in USD) and its percentage of the total trading volume (February 28 2021)

Figure 2: Mid-size trading assets: (measured in USD) (February 28 2021)

Figure 3: Smallest trading assets: (measured in USD) (February 28 2021)


#####################. Spread %. ##########################################

Spread %


Spread percentage is the width of the bid/ask spread divided by the bid/ask midpoint. The values are generated by taking the median spread percentage over each minute, then the average of the medians over the day.

Figure 4: Average spread % by pair (February 28 2021)



.


#########. Returns and Volume ############################################

Returns and Volume


Figure 5: Returns of the four highest volume pairs (February 28 2021)


Figure 6: Volume of the major currencies and an average line that fits the data to a sinusoidal curve to show the daily volume highs and lows (February 28 2021)



###########. Daily Returns. #################################################

Daily Returns %


Figure 7: Returns over USD and XBT. Relative volume and return size is indicated by the size of the font. (February 28 2021)



###########. Disclaimer #################################################

The values generated in this report are from public market data distributed from Kraken WebSockets api. The total volumes and returns are calculated over the reporting day using UTC time.

Source: https://blog.kraken.com/post/8078/kraken-daily-market-report-for-february-28-2021/

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Blockchain

Crypto Exchange Mistakenly Sold Bitcoin for $6,000: Now Requests Users To Return It

Republished by Plato

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What started out as a normal trading day for some PDAX customers led to a favorable turn of fortune, or so it seemed. Their euphoria may have been short-lived by a harsh reality check as the Philippine-based exchange prepares to take legal actions.

Philippine Digital Asset Exchange (PDAX) suffered a flaw that led to bitcoin trading 88% below its actual price. The exchange reported that a surge in trading activity was the cause. At the time, bitcoin was trading north of $50k, but traders were able to scoop some for $6k.

Although PDAX halted operations to fix the glitch, it was a bit too late by then. Some users capitalized on the loophole and withdrew bitcoins out of the exchange.

To avert the massive loss, PDAX has asked traders to return its bitcoin or risk facing legal proceedings. Many users claim to have received messages to this effect.

It remains unclear how the legal proceedings will play for PDAX, with users rightly pointing out that traders’ actions are within the agreed terms and conditions.

Bitcoin Whale Responsible For Glitch?

Large volume transactions have become the order of the day as bitcoin whales step up activity. Their mass transactions often indicate strong bullish signals unless they get hooked while at it.

Reports surfacing on social media led to strong suggestions that the entire fiasco occurred due to an error by a bitcoin whale. who allegedly sold 316,000 BTC for PHP 300k (about $6100) instead of the actual price of PHP 2.3 million ($47,000). This prompted PDAX to cease trading activity and temporarily shut out users.

Users Outraged By Inability To Access Accounts

PDAX’s attempt to control the situation turned out to be counterproductive as it sparked outrage from many users on social media. The downtime, which lasted for 36 hours, left customers furious as they could not access their accounts.

They expressed frustration due to missed trading opportunities and accrued losses from not being able to close positions.

PDAX Clears The Air

PDAX eventually released a comprehensive report addressing the issue. It claimed that an “isolated unfunded order” infiltrated its system and affected the account of its users. It explained further that it had tracked and rectified the glitch and was in the process of fully restoring users’ accounts.

Speaking in a press conference, PDAX CEO Nichel Gaba said:

“It’s very understandable that a lot of users will feel upset they were able to buy what they thought an order was there for Bitcoin at very low prices. But unfortunately, the underlying Bitcoins were never in the possession of the exchange, so there’s never really anything there to be bought or sold, unfortunately.”

The BSP-licensed exchanged assured users that it will continue addressing their concerns and rendering support where necessary.

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Source: https://cryptopotato.com/crypto-exchange-mistakenly-sold-bitcoin-for-6000-now-requests-users-to-return-it/

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