Liquidity Crunch Drives Bitcoin, Ether to Double-Digit Losses
The crypto market plunged towards April’s lows on Friday, with bitcoin and ether both dropping about 10% in 24 hours.
BTC was recently trading around $82,200 with ETH near $2,700. The altcoin market fared worse than the major cryptocurrencies as several tokens slumped as much as 20%. The CoinDesk 20 Index (CD20) fell 10% while the CoinDesk 80 Index of next-biggest tokens lost 12%, with all members in negative territory.
The sell-off was in part due to the liquidity crisis that spawned during October’s sell-off and liquidation event. Recent CoinDesk Research revealed that liquidity was still hollow follow the crash, paving the way to more violent price swings.
It wasn’t just crypto that felt the squeeze. U.S….
