Bitcoin finally moved after the stagnation and dropped to below $20,000.
Many altcoins are also deep in red. Ethereum is now at $1,500. SOL, ADA and AVAX are down by as much as 8% per day.
Bitcoin Drops Below $20K
The primary cryptocurrency suffered a particularly bad week. It dropped from $25,200 up to $21,000 in just a few days. The asset calmed down after this increased volatility and traded for most of the days in a range between $21,000 to $22,000.
On Thursday, it tried to take down the former but was stopped by its own feet. According to yesterday, the price was dropped to $21,500.
Jerome Powell addressed the nation, reiterating previous Fed statements regarding trying to bring down inflation to 2%. Although it has been repeated many times before, it had an immediate impact on the price of Bitcoin.
Bitcoin plummeted by more than $1,000 in just hours and fell below $20,500. BTC dropped below $20,000 today for the first time since July. This caused liquidations worth millions of dollars, which was somewhat unexpected.
It has traded just above that line and bounced back, but its market capital has fallen below $400 billion.
BTCUSD. Source: TradingView
lts. See Red
Most altcoins follow the same pattern as Bitcoin when it heads south.
Ethereum was one of the top performers up until recently, possibly due to the hype surrounding the Merge. As such, ETH had risen to $1,700 just two days before. However, today’s second-largest cryptocurrency lost over $200 and fell below $1,500 earlier today.
Cardano drops 8.5% per day, Solana falls by 7% and Avalanche falls by 8%. Binance Coin and Polygon are also deep red, but with less severe declines.
Similar problems are affecting the lower- and middle-cap alternative coins. The overall crypto market cap has lost more than $80billion in one day, and it is now below $1 trillion for almost a month.
Cryptocurrency Market Overview. Source: Quantify Crypto
CryptoPotato’s first post, $80 Billion Goes From Crypto Markets As Bitcoin Drops to 6-Week Low appeared on CryptoPotato.
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