The market has once again closed with a loss after trading for the past 24 hours. Bitcoin dropped around 11% to $18,100 on Saturday, with total cryptocurrency market capitalization (excluding Bitcoin) $501,001,022,269. Bitcoin all-time high (ATH) 10 November $69,020.00.
Why Bitcoin Is Still Crashing ?
Even if there isn’t a single cause that can be pinpointed for the fall of the cryptocurrency market, many industry professionals believe that it has more to do with the current state of the global economy than it does with the cryptocurrency itself. Even while many doubters were quick to point out the declining prices of cryptocurrencies, markets worldwide have been plummeting.
In addition to the cost of living crisis, inflation has been skyrocketing in recent months, reaching a 40-year high in the UK back in May, and it’s not just it’s not just the UK that’s been undergoing this; according to Marketwatch, inflation in the United States has also been rising to around 8.6 percent. In the UK, inflation hit a 40-year high back in May, and it’s not just the UK that’s been experiencing this.
The Federal Reserve of the United States stated on Wednesday that it would be increasing the interest rate by 0.75 percent, making it the most significant increase in rates since 1994. When the Federal Reserve raises interest rates, many investors, bracing themselves for the possibility of a recession, sell riskier assets such as crypto and tech stocks.
A survey that was published the same day by S&P Global Market Intelligence indicated that FAANG stocks (stocks related to Apple, Amazon, Facebook, Netflix, and Google) have lost a collective $3.328 trillion in value this year.
Terra Luna, which had hit a high point of $118 in April, fell to a value of $0.09 throughout the course of the previous month, while TerraUSD plunged down to a worth of $0.4. This was in addition to the fall of two other currencies, Terra Luna and TerraUSD, which occurred during the previous month. All of this led to widespread fear in the cryptocurrency community and even pessimistic views among those who had previously maintained an optimistic outlook.
The cryptocurrency lending platform Celsius has put a hold on all withdrawals, swaps, and transfers for their customers, claiming “extreme market circumstances” and liquidity difficulties. That evening, the native CEL token of the decentralized finance (DeFi) network had a drop in value of 70 percent in only one hour, coinciding with a larger market selloff that sent Bitcoin’s price to levels not seen before 2020.
The total amount of digital assets locked on the Celsius (CEL) protocol decreased from approximately $24 billion to $12 billion during the first half of the year 2022. Despite the fact that Celsius (CEL) has not crashed anywhere near as quickly as Terra (LUNA), a lot of funds have left the network recently.
Bitcoin Level to Watch
Bitcoin dropped below the barrier at 20k dollars as if it weren’t a support. The following places of support may be found around the 18k level, followed by the 14k area (2019 highs). It is important to take note that there are two negative trend channels, one with a very long period and one with a shorter term.
Ethereum
Ethereum (ETH), the coin linked to the Ethereum blockchain network, dropped more than 9 % to $927.29 today. Ether all-time high (ATH) is $4,867.36.
