  The latest moves in crypto markets, in context Edited by Parikshit Mishra (Substituting for Omkar Godbole) January 6, 2022 Sponsored by  If you were forwarded this newsletter and would like to receive it, sign up here.
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Market Moves By Shaurya Malwa and Bradley Keoun  Bitcoin broke below the $46,500 support level on Wednesday. (TradingView) In the last 24 hours, crypto futures worth over $812 million were liquidated as bitcoin broke its $46,000 support level and fell to $43,000, according to data from analytics tool Coinglass.
Adding to the market pressure were indications that the Bitcoin blockchain's hashrate – a gauge of the network's computational security – fell amid protests in Kazakhstan, which brought a nationwide internet blackout. The country had become one of the biggest destinations for crypto-mining operations following last year's exodus from China.
Liquidations occur when an exchange forcefully closes a trader's leveraged position as a safety mechanism due to a partial or total loss of the trader's initial margin. This happens primarily in futures trading, which only tracks asset prices, as opposed to spot trading, where traders own the actual assets.
A drop in bitcoin prices led to altcoin markets seeing deep cuts. Over 200,000 positions were liquidated in the past 24 hours, with a bulk of the losses coming during the U.S. hours.
Here's what analysts and crypto industry executives are saying about the latest market sell-off:
Polkadot, Solana Biggest Losers in Sell-Off By Shaurya Malwa  Plunge (Shutterstock) Top cryptocurrencies saw deep losses in the past 24 hours, retreating in sync with bitcoin.
Among the top 10 cryptocurrencies by market capitalization, the tokens of Ethereum rivals Avalanche (AVAX), Terra (LUNA), and Solana (SOL) – the so-termed 'SoLunAvax' trade – fell as much as 12% in the past 24 hours. Polkadot (DOT), another Ethereum rival, saw its tokens fall by 14% before seeing a slight revival in Asian hours on Thursday.
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DOT support levels and RSI readings. (TradingView)
SOL fell from the support level of $167 to $144 during Asian hours on Thursday, temporarily reaching prices last seen in October 2021. The $130-$140 range remains crucial for SOL, according to the charts. Falling below that range SOL could drop to $78 if previous resistance levels are considered.
SOL support levels and RSI readings. (TradingView)
LUNA, which surged from $50 at the start of December 2021 to a high of $103 later that month, continued the downtrend it has witnessed since the past two weeks. Prices were at support levels of $75 during Asian hours on Thursday and dropping below the support could trigger a fall to nearly $50.
LUNA support levels and RSI readings. (TradingView)
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Crypto Prices
Bitcoin (BTC)
See the latest price here
Ether (ETH)
See the latest price here
The following are the biggest movers in the CoinDesk 20 digital assets over the past 24 hours:
Biggest Gainers:
Biggest Losers:
| Asset | Ticker | Returns | Sector |
|---|---|---|---|
| Internet Computer | ICP | −17.7% | Computing |
| Polkadot | DOT | −12.3% | Smart Contract Platform |
| Solana | SOL | −12.2% | Smart Contract Platform |
Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges.
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A Message from Horizen
Happy Holidays from the Horizen Team! Join our holiday giveaway to win some $Zen
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Latest Headlines
- Kazakhstan's Hashrate Drops as Internet Blackout Persists Amid Nationwide Protests
- Thailand's Crypto Traders to Be Subject to 15% Capital Gains Tax: Report
- Polkadot, Solana Biggest Losers Among Top Cryptos
- Bitcoin Falls Below $43K, Leads to $800M in Crypto Liquidations
- US Congress Organizing Oversight Hearing on Crypto Mining's Environmental Footprint: Report
- Sygnum Valued at $800M in $90M Funding Round: Report
- Singapore Tycoons' Sons Plan Private NFT Club That Will Become an ARC to the Metaverse: Report
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ICYMI
In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:
Risk and Opportunity for Algorithmic Stablecoin, The Case for BlockbusterDAO
"First Mover" hosts speak to Harvard Business School Professor of Business Administration Marco Di Maggio about the risk and opportunity for algorithmic stablecoin. Seth Ginns, CoinFund managing partner and head of Liquid Investments, analyzes crypto markets. Plus, taking a page from ConstitutionDao, will BlockbusterDAO succeed in its mission? Tasafila, founder of BlockbusterDAO, shares insights into the movement.
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.
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