Bitcoin Price Plummets Below $40,000 As Crypto Market Tallies $440 Million In Liquidations
April 12 2022 - 2:21AM
NEWSBTC
Bitcoin fell 15% in the last 24 hours, plunging below $40,000 for
the first time since middle of March. Meanwhile, Ethereum was down
14%, retreating below the $3,000 level for the first time since
March 22. BTC was trading at $39,783 at the time of writing, while
Ether (ETH) fell to $2,978.54, according to Coingecko data.
Investors are weighing the prospects of rising interest rates,
skyrocketing inflation, and global commerce being disrupted as a
result of Russia’s attack on Ukraine, among other factors.
Suggested Reading | What’s Next For Bitcoin As Prices Encounter
Difficulty Reclaiming $43,000? Bitcoin Retreats To Monthly Low
Faced with the threat of further rate hikes by the US Federal
Reserve, Bitcoin, along with stocks, is sliding to a monthly low.
Hundreds of millions of dollars worth of liquidations have occurred
as a result. Market experts believe that the central bank’s balance
sheet reductions are exerting downward pressure on stocks and risk
assets, with Bitcoin potentially losing allure. Decentrader
co-founder filbfilb concurred with these severe headwinds, stating
that the Fed’s action will have an effect on the BTC price trend
“for months to come.” Lesser Exposure To Speculative Assets
Investors appear to be decreasing their exposure to speculative
assets, such as stocks and cryptocurrencies, in response to fears
about inflation and slowing economic development. Additionally, the
10-year Treasury yield increased to a fresh three-year high of
2.77% on Tuesday, lowering the present value of high-priced
technology equities. Bitcoin, which has generally been reasonably
connected with the pricing of other cryptocurrencies, has recently
become more correlated with stock prices. BTC total market cap at
$765.42 billion on the weekend chart | Source: TradingView.com
Suggested Reading | Price Of Bitcoin Retreats Under $42,000 As
Enthusiasm From Miami Event Fizzles Last month, the cryptocurrency
asset’s price correlation with the S&P 500 reached 0.50, with
-1 indicating that they move in complete opposition to one another
and 1 indicating that they move in perfect sync. According to
Arcane Research data, it was the highest rate since October 2020.
Nydig, a Bitcoin-focused asset manager, noted in a note to
investors: “Bitcoin investors continue to be concerned about rising
interest rates and the prospect of tighter monetary conditions.”
Looming Crypto Meltdown On Sunday, BitMEX founder Arthur Hayes
warned of a “coming crypto carnage” and projected that both Bitcoin
and Ether would continue to plummet far further. The billionaire
investment banker-turned-crypto mogul predicted that Bitcoin and
Ether will “bottom well before the Fed moves” and reverses course
on its tightening policies. Hayes anticipated that the two leading
cryptocurrencies would touch the $30,000 and $2,500 levels by the
end of June. Within 24 hours, Coinglass reports that roughly $440
million has been liquidated across the broader crypto market. This
totals over 140,000 trades, one of which resulted in a $10 million
loss on a single trade. Featured image from Medium, chart from
TradingView.com
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