Bitcoin plunged nearly 5% to $86,950 in Sunday trading, triggering $539 million in liquidations after the asset endured its worst November performance since 2018.
Bitcoin failed to break key resistance over the weekend and slumped almost 5% in just three hours on Sunday.
The asset had spent most of the weekend trading around $91,500, where it appeared to be consolidating toward the end of the month, but suddenly declined to $86,950 on Coinbase, according to Tradingview.
The almost 5% slide followed the first green weekly candle close for four weeks, with Bitcoin ending the week at $90,411, according to Tradingview.
“As seen countless times this year, Friday night and Sunday night often come with large crypto moves,” observed the Kobeissi Letter, adding the slump came without an obvious news catalyst.
More leverage has been liquidated
Kobeissi blamed the flash crash on a “sudden rush of selling volume, which led to a domino-effect sell-off, which is only amplified by the historic amounts of levered positions being liquidated.”
“This crypto ‘bear market’ is still structural in nature. We do NOT view this a fundamental decline.”
Related: Bitcoin 2022 bear market correlation hits 98% as ETFs add $220M
Over 180,000 traders were liquidated in the past 24 hours, with total liquidations at $539 million and the majority of that in the past few hours, reported CoinGlass. Almost 90% of those liquidations were long positions, predominantly in BTC and Ether.
Worst November since 2018
Bitcoin saw its worst month of this year and its worst November performance since 2018, ending the month down 17.49%, according to CoinGlass. The asset declined 36.57% in November 2018, during a brutal bear market.
Analyst “Sykodelic” remained bullish, stating, “This is actually a great start to the month.”
There was no Sunday pump, the CME gap already closed, and $400 million in longs have been taken already, he said. “Downside liquidity swiped first, which is what we want to happen.”
Here’s what you can see although around the globe
Seven countries mull new rules for crypto taxes
The taxman cometh. Crypto adoption is increasing at institutional levels, and now regulators have no choice but to decide how and whether certain types of digital assets can be taxed.
Seven different jurisdictions began to make changes to their crypto tax codes in November. In the US, the White House began to review an Internal Revenue Service proposal to join the global Crypto-Asset Reporting Framework. This would allow the US tax service to access Americans’ foreign crypto account data.
In Spain, the left-wing Sumar party, which is part of the Socialist Party’s ruling coalition, proposed raising the top tax rate for crypto to 47%. This would replace the current 30% savings rate and set a flat 30% tax for corporate holders.
Switzerland decided to delay its new reforms until 2027. Brazil is considering a tax on international crypto transfers. Japan is considering a 20% crypto tax rate, a reduction from the current 50%.
France is turning the screws on crypto with a potential “unproductive wealth” tax classification, while the UK is simplifying decentralized finance tax reporting.
*********************************
Be the first to get most important HYIP news everyday!
Simply Follow EN Facebook, EN Telegram, EN Twitter
or Subscribe to EN Feedburner and submit your email address!
If you like this article and want to support EN – please share it by using at least few of social media buttons below. Thanks and See you tomorrow!
