Crypto Markets Lose $100 Billion As Bitcoin Drops Below $26K – More Pain Ahead?
June 13 2022 - 1:31AM
NEWSBTC
The broader crypto markets have been particularly shaken up in the
previous 24 hours, with Bitcoin falling below the $26,000 threshold
once more. Bitcoin is currently selling at $25,168.94, down 16% in
the last week, according to statistics from Coingecko published on
Monday. As Bitcoin fell to its lowest level since late 2020, the
entire cryptocurrency market is feeling the squeeze of recession
fears, which could deter investors from placing riskier wagers.
Suggested Reading | Bitcoin Takes A Beating At $27K As Crypto
Economy Settles Just Above $1 Trillion However, alternative coins
are affected far as severely. Ethereum, for instance, has fallen
below $1,500, down 70 percent from its all-time high of over $4,900
in November 2021. In the past 24 hours, Dogecoin, TRON, and
Avalanche all witnessed double-digit losses. The overall market
capitalization of cryptocurrencies has been trading in a declining
channel for the past month and is currently supported at $1.17
trillion. The crypto market has become increasingly tied to
traditional equity markets in recent months (CNBC). $100-B Wiped
Out From Crypto Market The cryptocurrency market lost more than
$100 billion over the weekend after United States Treasury
Secretary Janet Yellen offered a gloomy crypto warning. The market
valuation of Bitcoin has decreased to $520 billion. The silver
lining for BTC bulls is that their control over alternative
cryptocurrencies has increased to about 48 percent. After a few
brief and fruitless bids to surpass $32,000 in the last seven days,
the world’s largest cryptocurrency began to progressively lose
value. Bitcoin’s last rejection at this level sent its price down
to $30,000, where it remained for several days. BTC total market
cap at $498 billion on the weekend chart | Source: TradingView.com
Rich Blake of the cryptocurrency startup Uphold says: “Crypto
appears to be losing the ideal opportunity to illustrate its
forgotten function as a hedge against inflation.” Inflation Jitters
And Bitcoin’s Volatility Inflation estimates for the United States,
8.6 percent, were announced late Friday. The four-decade record
increased Bitcoin’s volatility, resulting in today’s plunge to the
$25,000 mark. In recent months, the crypto market has become
increasingly connected with traditional equity markets. The Nasdaq,
which focuses on technology, was down 3.5%, while the S&P 500
and Dow Jones Industrial Average were down more than 2.5%.
Suggested Reading | Dogecoin Mining Revenue Massively Fell In Past
12 Months Next week’s two-day meeting of the US Federal
Reserve is anticipated to result in a further increase in interest
rates. This week, Yellen also cautioned against putting
cryptocurrency in 401(k) plans, adding to the gloomy sentiment.
Last week, the central banks of Australia and Canada, where
inflation has also intensified, raised their rates by approximately
50 basis points, while the European Central Bank announced it would
cease asset purchases and begin rate hikes later this summer.
Featured image from Reynolds and Reynolds, chart from
TradingView.com
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