Crypto Market Volatility: Selloff and Rebound
- Bitcoin dipped below $81,000 on Thursday before rebounding to $82,236.
- Nearly $1 billion in crypto longs were liquidated in the past day, with Ethereum leading the losses.
- Spot Bitcoin funds saw outflows of $484.9 million on Wednesday and another $244 million on Thursday.
- Bitcoin funding rates turned negative midweek for the first time in months.
- Vitalik Buterin warned that AI could break encryption within two years, suggesting a shift from lattice-based to hash-based cryptography.
The crypto market experienced significant volatility with major coins like Bitcoin and Ethereum facing sharp declines followed by partial recoveries. The substantial liquidation of crypto longs highlights market fragility amid external pressures such as geopolitical tensions affecting oil prices.
Despite recent market turbulence, no fundamental changes have occurred in the broader crypto bull case, suggesting these movements may be a temporary correction rather than a long-term downturn.(Source)
