Cryptos today: Bitcoin drops more than 3% and loses $39K; Ethereum dips below $3,000 and altcoins see sharp declines

After a few days of stability, cryptocurrencies start the week back from the holiday with a strong fall, reflecting investor concerns about the macroeconomic scenario and also the end of the income tax return deadline in the United States.

On the morning of this Monday (18), Bitcoin (BTC) recorded a drop of almost 4% in the last 24 hours, below US$ 39 thousand, while Ethereum (ETH) lost more than 4.5%, close to losing the level of US$ 2,900.

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With the pullback, Bitcoin hits its lowest prices since March 15, losing the $40,000 support considered important by experts. The world’s largest cryptocurrency is now down 17% in three weeks after peaking at $48,000.

For US investors, the deadline to submit 2021 tax returns ends this Monday and the scenario repeats what was seen last year, when market participants sold their cryptos during the income tax season, between January 1st and 15th. April, according to David Duong, director of institutional research at Coinbase.

“Tax-related sales have definitely played a role in recent weeks,” Jeff Anderson, CIO of quantitative trading firm and liquidity provider Folkvang Trading, told CoinDesk. “However, it is difficult to say exactly how much of the weakness was due to the fiscal deadline.”

Anderson added that “people were positioned for the end of the tax sale on Monday and the [aumento contínuo] in income ended that.”

The U.S. 10-year Treasury yield rose to 2.88% on Monday, the highest level since December 2018. U.S. nominal and real or inflation-adjusted bond yields have been falling in recent weeks, thanks to the rally. inflation and the Federal Reserve’s plans to provide rapid interest rate hikes. As a result, risky assets, including tech stocks and cryptocurrencies, are under pressure.

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According to George Liu, head of derivatives at Babel Finance, the strengthening of Bitcoin’s correlation with equities may be the most dominant reason behind the dip below $40K.

“The tax issue is already known and anticipated in the markets, so we don’t see it as a deciding factor for the current price drop,” Liu said. “Basically, the short-term correlation between Bitcoin and US equities has reached a new peak.”

Furthermore, technical data also shows that derivatives traders appear to be positioning themselves for a more prolonged Bitcoin drop, as indicated by the increasing distortions of put-calls, which measure the cost of puts (put options) against calls ( purchase options).

Glassnode also showed this concern in a report on Sunday. “Selling pressure has resurfaced in the perpetual market as offer transactions have overtaken the sell side,” the analysts said. “The number of perpetual contracts with negative borrowing rates has increased, reinforcing downward pressure.”

A negative funding rate implies that traders strongly believe that the market is falling and that they are paying a cost to go short.

The session is of widespread market decline, with altcoins recording losses greater than Bitcoin, as is the case with Solana (SOL) and Cardano (ADA), which are down more than 6% each, as is the case with Dogecoin (DOGE) and Shiba Inu ( SHIB).

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Check out the performance of the main cryptocurrencies at 7:15 am:

cryptocurrency Price Change in the last 24 hours
Bitcoin (BTC) US$ 38,977.75 -3.61%
Ethereum (ETH) US$ 2,907.91 -4.50%
Binance Coin (BNB) US$ 401.06 -3.25%
XRP (XRP) US$ 0.7374 -5.62%
Sun (SUN) US$ 96.22 -5.72%

Cryptocurrencies with the biggest gains in the last 24 hours:

cryptocurrency Price Change in the last 24 hours
Decred (DCR) US$ 67.20 +17.42%
Batteries (STX) $1.22 +4.51%
One But The Lion (The Lion) $5.82 +0.80%
Monero (XMR) US$ 239.22 +0.56%
Hearing (AUDIO) $1.28 +0.29%

Cryptocurrencies with the biggest drops in the last 24 hours:

cryptocurrency Price Change in the last 24 hours
Filecoin (FIL) $18.88 -10.75%
Ziliqa (ZIL) US$ 0.1018 -10.58%
Waves (WAVES) US$ 19.02 -10.24%
EOS (EOS) US$ 2,339 -10.12%
Stepn (GMT) $2.28 -9.91%

Check out how cryptocurrency ETFs closed in the last trading session:

ETF Price Variation
Hashdex NCI (HASH11) BRL 34.35 -3.07%
Hashdex BTCN (BITH11) BRL 45.30 -1.73%
Hashdex Ethereum (ETHE11) BRL 41.85 -2.71%
Hashdex DeFi (DEFI11) BRL 38.20 -2.04%
Hashdex FI Smart Contract Platform (WEB311) BRL 38.85 -5.93%
QR Bitcoin (QBTC11) BRL 11.95 -1.14%
QR Ether (QETH11) BRL 10.33 -3.36%
QR DeFi (QDFI11) BRL 6.86 -0.14%

See the main crypto market news for this Monday (18):

Attack Steals $182 Million From Beanstalk Stablecoin Protocol

Beanstalk Farms, an Ethereum-based stablecoin protocol, suffered a $182 million attack on Sunday.

The attack was flagged on Twitter by blockchain security firm PeckShield, which said the attacker snagged at least $80 million worth of cryptocurrencies, although the losses suffered by the protocol were much greater.

With that, the price of the BEAN stablecoin has collapsed, posting losses of more than 80% this morning and losing its parity with the dollar, worth less than $0.20 per asset.

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