No rallies or feats of price records this week as the crypto market continues to mull the events of last weekend and tastes the bitterness of a rollback. The following is a short overview of the main news that made the headlines on Thursday, April 22nd, 2021.
The king of cryptocurrencies is reeling from its failures last weekend as traders are continuing to engage in a massive selloff. The cryptocurrency dipped below the psychological threshold of $50,000 a coin, reaching at one point a price mark of $48,300. Though the price did not linger that low for long, the ensuing break upward stalled prices at the $49,800 mark, allowing for some room for maneuver is the coin wishes to test the highs it had previously attained. The dip in prices of the main cryptocurrency has also resulted in a roll backwards in the prices of all major altcoins on the market, as ETH lost up to 10% in value, XRP up to 8%, and the rest of the pack in the top twenty losing on average 8%. The selloff continues as investors are losing confidence in the ability to generate quick profits against the background of a slowdown in the bullish run of Bitcoin.
Major experts on the crypto market, including head of the Binance exchange, Changpeng Zhao, are suggesting market participants to refrain from the HODL model and engage in active trading. The suggestion is being based on the assumption that active trading creates demand for assets, thus resulting in an increase in their price. As Bitcoin adoption continues, more users are simply holding their assets on wallets and are not contributing to their turnover on the market. This, in turn, results in lower liquidity and lower demand for the asset as a tradable commodity. The suggestion also comes as the volumes of Bitcoin on the major exchanges on the market are falling dramatically to all-time lows. It is also logical to conclude that the experts and heads of exchanges suggesting trading as an alternative to HODL strategies are simply serving the interests of their platforms.
The Turkish THODEX crypto exchange has been suddenly shut down, rendering the service unavailable to all of its users. The service’s website is currently displaying Error 1020, which signifies Access Denied. The website also states that the closure is due to a “partnership proposal”. The exchange’s community service claims that it can take up to five working days to resume operations on the platform. However, events are being made more suspicious by the fact that the head of the THODEX exchange Farouk Fatih Ozer left Turkey in the evening of the same day when the exchange stopped operating. Ozer also deleted his social media accounts, making it clear that he has gone into hiding under the radar. According to calculations, the total amount of funds blocked on the accounts of the exchange is estimated at two to ten billion dollars.