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Major crypto assets regains momentum after the flash crash

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  • Crypto assets like Bitcoin, Ethereum, and Dogecoin are again witnessing green colour
  • Bitcoin is able to surpass the benchmark level of $50,000 after the recent flash crash
  • This weekend the price of ETH plunged below $3,650, but has managed to surpass the level of $4k
  • As BTC regains its momentum it seems Dogecoin and Shiba Inu are also soaring

Crypto market has recently faced a flash crash after achieving new all-time highs earlier last month. However, the plunges did not create any panic scenario this time like the last scenario in mid-May when several investors were exiting the market due to fear. According to analysts, it seems that major digital currencies are now regaining their bullish sentiments in the digital assets market. Indeed, the green color has made a comeback in the charts as global digital currency market capitalization has surged by more than 4%. At press the total market cap of the industry is $2.35 trillion.

Major crypto assets are up over the past 24-hours

Bitcoin, the most popular and leading digital asset has been observed soaring after a flash crash of this weekend. As BTC lost more $10k over one night, it seems to have gained back its bullish momentum earlier this week. Over the last 24-hours, Bitcoin price surged by more than 3.4% and was able to surpass the benchmark level of $50k. Still over the past week, the coin is down by about 12%.

With Bitcoin shedding blood in the crypto market, its impact has also been observed in the altcoin market. Ethereum, the largest altcoin in terms of market cap, has also been observed soaring upwards by more than 4% over the same period of time after facing the flash crash when. This weekend the price of ETH plunged below $3,650, but has managed to surpass the level of $4k. At press time ETH is trading at the price level of $4,289.18.

Meme-coins ecosystem also recovers

Meme-coins ecosystem was mostly affected this weekend, as the market witnessed the flash crash. As the leading crypto asset lost its momentum, DOGE and SHIB lost billions in terms of their market capitalization. Several other meme-based projects also had to suffer by losing their previous gains. However, as BTC regains its momentum it seems Dogecoin and Shiba Inu are also soaring. Over the last 24-hours Dogecoin price has surged by more than 5%, whereas, SHIB price is up by more than 6%.

Last week’s Post Mortem noted the reason for flash crash

On Monday, Ki Young Ju, CEO of CryptoQuant shared a chart that highlighted the Exchange Whale Ratio’s 3-days moving average. According to the reports, the ratio stays often below 85% in bull markets, while above 85% in bear or fake bull markets. However, Young Ju had earlier noted that the ratio was touching 91%.

Last week’s Post Mortem report by Delphi Digital highlights the events that caused a collapse in crypto market microstructure. According to the report the bid-ask spread for a $5 million order in perpetual markets ranges from 0.1% to 0.5%. Notably, on this occasion spreads for a $5 million order momentarily surged on exchange platforms. 

Notably, Delphi Digital pointed the finger at a few entities for the crash. The independent research boutique underscored that for once the calamity was catalyzed on spot markets, where some of the entities sold a large amount of BTC over a very short time period. Essentially the incredible crypto sell orders ate through the buy walls.

Ultimately, the scenario caused an unwillingness on the part of the liquidity providers until the coin designed by Satoshi Nakamoto bounced off $42k level. Hence, the normality in the price action continues amid the scenario.

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