Biggest Red Candle in Bitcoin History Sheds $100 Billion From Market Cap

If you thought the Bitcoin bloodbath ended yesterday… boy, were you wrong!

On Monday, Bitcoin registered what was then the sharpest gross drop in its history in terms of dollar amounts. In a matter of hours, the price of Bitcoin went from just over $57,500 to bottoming at $46,700. But a bullish effort from traders saw its price rebound, and the candle closed at $54,142.

And just when Bitcoin investors were starting to talk about a market recovery, the real flash crash happened.

Yesterday, crypto analysts were admiring (if you can call it that) Bitcoin’s daily red candle wick—that is, the minimum point reached before reversing the trend during the day. But today, the market is faced with the largest red-bodied candle in Bitcoin’s history. Starting the day at $54,100, BTC only managed to reach $54,200 for a few minutes before plummeting to its current price of just above $48,000.

The dip cut Bitcoin’s market cap down by nearly $100 billion, from above a historic $1 trillion to now just above $900 billion.

BTCUSD. Image: Tradingview
BTCUSD. Image: Tradingview

Its daily minimum came in at $44,880, just off a slight support zone marked by a correction after the price spike following Tesla’s announcements in early February 2020. At the time, Elon Musk’s electric car company revealed a new corporate strategy to the SEC, buying $1.5 billion worth of BTC, and announcing that it was working on accepting Bitcoin payments.

Bitcoin has been in price discovery mode since it first broke the $20,000 price zone—the previous all-time high registered in 2017. Price discovery happens when an asset breaks its all-time high and then maintains a bullish trend. It is called “price discovery” because traders have no previous experience buying and selling above that specific price.

And despite the drop over the last two days, Bitcoin has been on an epic bull run, exceeding the expectations of even the most experienced analysts. Some were even expecting a short-term sell off. Real Vision founder Raoul Pal, for example, shared his relief follow yesterday’s market correction:

Still, some market observers may be surprised to see that even Square’s bullish news—that it has invested another $170 million of corporate funds in Bitcoin—hasn’t been enough (yet) to reignite the rally.

For the time being, it may not be a bad idea to consider removing those laser eyes from your Twitter profiles.


The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.


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This Low-Cap Altcoin Will Disrupt Gaming and Become Top Crypto Asset of 2021, According to Trader Ben Armstrong

Crypto trader and YouTuber Ben Armstrong is revealing a low-cap altcoin that he says will shake up the gaming industry and become one of the top crypto assets of the year.

In a new video, Armstrong tells his 561,000 YouTube subscribers that he’s eyeing Phantasma, a fast, secure, and scalable blockchain solution for gaming, non-fungible tokens (NFTs) and decentralized apps.


“The blockchain is powered by a dual-token structure. The governance token SOUL and the energy token KCAL, which allows for interoperability with other blockchains while maintaining a decentralized governance system. Phantasma supports tri-chain interoperability between Phantasma and Neo and Phantasma and Ehtereum, although the cross-chain capability between Neo and Ethereum isn’t quite possible yet. Phantasma enables smart NFTs, infused NFTs, multilayered NFTs with very cheap minting.”

The crypto influencer explains that Phantasma makes use of smart NFTs to perform new functions in video games, such as in the 22 Racing series by GOATi Entertainment.

“Smart NFTs build on the original use cases of digital non-fungible tokens and take things to the next stage by adding properties like time-based access and infusing the NFTs with other assets. Last year at the PAX online gaming conference, GOATi Entertainment debuted the world’s first time-based NFT in their RTS racing game… The NFT gave attendees the ability to play the game for a short period of time in beta…

22 Racing Series isn’t just another NFT game though. The game is featured on the infamous gaming platforms Steam, PS4, and Xbox One. 22 Racing series allows its users to buy and trade vehicles or make assets to sell or license while the non-fungible tokens give you ownership control and flexibility. Cars themselves are actually a combination of these multilayered smart NFTs consisting of 25 or more individual NFTs to create a hypercar within the game. This takes the infusing or fusion of NFTs like the breeding of CryptoKitties to a whole new level. For those that do not understand the concept, it’s essentially the combining of NFTs to create cars within the game that you can then race.“

Armstrong highlights that if popular video games ever start featuring the use of NFTs, Phantasma is currently at the forefront of being able to provide them with the service.

“Just imagine if Fortnite or one of those other popular games implements NFTs for users. Such a system could be huge and Phantasma is the top platform that can actually deliver that to reality.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Anastassiya Bezhekeneva


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Altcoins nurse double-digit losses as Bitcoin bulls fight to retake $49K

Another wave of selling pressure hit the cryptocurrency market on Feb. 23 as Bitcoin struggles to reclaim the $49,000 level.

Data from Cointelegraph Markets and TradingView shows that Bitcoin fell under intense pressure in the early trading hours on Tuesday and this pushed the price of BTC as low as $44,927 before buyers arrived to stop the descent.

The majority of altcoins and DeFi tokens are now even deeper into their double-digit losses and Bitcoin (BTC) price has dropped by more than $10,000 in the past 48 hours. 

BTC/USDT 4-hour chart. Source: TradingView

At the time of writing, BTC is trading at a price of $48,600, which reflects a 11% decrease for the day but according to Cointelegraph analyst Marcel Pechman, pro traders have looked to buy the dip and opened new leveraged long positions.

Today’s market downturn has overshadowed several positive developments for the cryptocurrency ecosystem, including the news that Bitfinex and Tether have settled their case with the Office of the New York Attorney General and agreed to pay $18.5 million for damages to the state of New York. Both parties also agreed to submit to periodic reporting of their reserves.

Interest in the first Bitcoin ETF in North America has also continued to explode as the Purpose Bitcoin exchange-traded fund has grown to $564 million in assets under management just five days after the fund was launched. Filings also show that the fund added 2,251 BTC being added to the fund on Feb.23.

Pullbacks are a sign of a healthy market

Despite the market-wide carnage, many crypto traders and professional investors view the current pullback as a necessary break that allows overbought assets to retest key underlying support levels.

As pointed out by Twitter user ‘Bitcoin Archive’, corrections like these are par for the course and were commonplace during the 2017 bull market which had “9 dips between 20-40%”. Despite these reoccurring deep corrections the market still increased by “20 times from its previous all-time” high over the course of 2017.

Significant BTC price pullbacks during the 2017 bull run. Source: Twitter

Summing up how that relates today and where BTC is headed, Bitcoin Archive stated:

“We are now sitting on 2.35x the previous cycle ATH OF 20k. This rally is just getting started”

Traditional markets rebound

Traditional markets also faced early selling pressure on Tuesday morning but they were able to climb back into the green shortly after Federal Reserve Chair Jerome Powell reaffirmed that the Fed will maintain the current accommodative policies, including keeping benchmark rates near zero and asset purchases at the current pace of $120 billion per month.

By the closing bell the S&P 500 and Dow managed were up 0.13% and 0.50% respectively, while the NASDAQ closed down 0.50%.

Altcoins take a beating with recent high flyers hit the hardest

Bitcoin’s $13,000 drop over the past 48-hours has taken a heavy toll on the altcoin market and many of the recent high-flying DeFi tokens took the brunt of the damage.

Daily cryptocurrency market performance. Source: Coin360 Coin (CRO) saw a 33% pullback and Binance Smart Chain’s Venus (XVS) DeFi protocol saw its price drop 24% to trade at $58.63.

A select few projects were able to buck the trend and post positive gains on Feb. 23, as new announcements about blockchain interoperability-related projects provided a well-needed lift to tokens focused on layer-2 and cross-chain transactions.

Solana (SOL) rose 11.23% to trade at $14.94 after the release of its new automated market maker protocol Raydium. Fantom (FTM) price also rallied by 24% after the team announced a collaboration with and the rollout of a cross-chain bridge to the Ethereum (ETH) network.

BTC/USD daily chart. Source: Coin360

The overall cryptocurrency market cap now stands at $1.44 trillion and Bitcoin’s dominance rate is 62%.