Bitcoin and Ethereum Sank Again During Asian Trading Session

On Monday, during the Asian session, the rates of most cryptocurrencies decreased by 2-5% due to fears of increased quarantine in China.

After a relatively quiet weekend, in the morningBitcoin dropped to $46 thousand, and Ethereum – to $3.8 thousand, or by 2.3% and 4.5% over the last day, respectively. At this time, there was a wave of futures liquidations amounting to more than $18.5 million, mainly on long positions in BTC and ETH. About half of the liquidation occurred on the Chinese exchange OKEx.

The decline intensified immediately after the start of trading in Asia, despite the measures taken by the People's BankChina to protect the economy from the detrimental effects of real estate problems and threats of isolation to contain the new wave of COVID-19.

Usually the crypto market reacts positively tosimilar actions by regulators, as investors begin to increase the share of assets that set against inflation. According to analysts, a slight reduction in the NBK rate (from 3.85% to 3.8%) was not enough to offset fears of increased quarantine.

However in the morning such price movementsare observed regularly. Options trader Frederick Collins noted that over the past year, the decline in leading cryptocurrencies occurred mainly during Asian trading sessions, while growth occurred in the American ones (60% for Bitcoin and 420% for Ethereum).

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