City, Country – Bitcoin no gree rest at all, as e don crash sharp-sharp! As we dey talk, e don fall below $104,000 wey we never see since June. Na serious wahala this one o. E dey currently sit down for $103,849, which na 3.2% drop for the day. Na wetin cause this one? Analysts dey point finger to DeFi sector wey dey face serious wahala and the macroeconomic fears wey don dey make investors para.
According to analysts wey talk to Decrypt, Bitcoin don already lose 17.5% from e record high wey e set for early October. Na serious selling spree dey happen across major altcoins like Ethereum, wey don record between 5% and 9% losses in 24 hours. If you check the crypto market, you go see say liquidations don rise well-well as e don hit $1.37 billion in the last 24 hours.
The market no dey smile again, as sentiment don turn sour. Na so annualized futures premium for major exchanges don drop from about 7% to below 4% over the past week. Investors dey very cautious now, no be small matter. Users don change from Greed wey dey at 59% on November 1 to 51.9% now. Dis wan wan really show say dem don dey pessimistic!
Na serious crisis of confidence as dem dey call am from the DeFi sector. Derek Lim, wey be Head of Research for Caladan, talk say na after Stream finance loss $93 million in assets that one cause serious ripple effects. The total bad debt for lending markets dey estimated to be around $284 million. Lim dey fear say this one fit scatter everywhere, because stablecoins and vaults dey face big exposure and forced redemptions.
Then yesterday, one fund manager for Stream disclose say e don lose about $93 million for Stream fund assets. They don start to engage one law firm – Perkins Coie LLP, to lead comprehensive recovery efforts. Na serious matter be this o!
But no be all doom and gloom as Bitget’s Ryan Lee still dey see some light as he talk say dis kind of flush-out dey reset valuations, paving way for stronger recovery when market sentiment stabilize. But the road to recovery no go easy at all; e dey depend on whether dem fit contain dis DeFi wahala and sort out the macro front.
As if say that one no dey enough, analysts dey talk say the U.S. government shutdown don dey affect the market as Treasury General Account (TGA) don rise to $1 trillion. This one don starve the market of much-needed liquidity, and e dey cause ripple effects in the financial system. They dey expect say once government start to spend again, liquidity go return and markets go boom.
We go dey watch dis market closely, because regardless of wetin happen, Bitcoin don show say e fit do am in any kind crazy market environment. But for now, e be like say na serious wetin we go see in short term.
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