Bitcoin, Ethereum and other major cryptocurrencies fell sharply, plunging the price of bitcoin below the closely watched level of $40,000 per bitcoin.
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Bitcoin price has been bouncing around $40,000 for most of 2022 as bulls and bears battle for control of the market. Meanwhile, the price of ethereum fell below the $3,000 ether mark for the first time since mid-March.
The combined crypto market has lost nearly $400 billion since early April, as the top ten cryptocurrencies including Binance’s BNB, Ripple’s XRP, Solana, Cardano, Luna and Counter avalanches, with analysts warning that a “financial market disaster” could push bitcoin below $30,000.
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“The signal for a break from the slight uptrend would be consolidation below the $38,000 per bitcoin levels,” FxPro senior market analyst Alex Kuptsikevich wrote in email comments. “If the bulls capitulate, the first cryptocurrency could be pushed into the $32,000-$35,000 range without much resistance.”
The selloff in bitcoin and crypto comes as U.S. stock market futures fell ahead of Monday’s open after a long holiday weekend, as investors brace for a week of earnings reports from the first quarter and speeches from Federal Reserve policymakers.
Last week, the March consumer price index showed an 8.5% increase from a year ago, the fastest annual gain since December 1981. Fed officials vowed to do whatever it takes to bring inflation under control, however, Goldman Sachs analysts have warned the Fed will struggle to calm inflation without causing a recession in the United States, which puts the odds that the economy shrinks by about 35% over the next two years.
“We are increasingly concerned about a summer of turbulence and volatility,” wrote Eric Robertsen, chief strategist at Standard Chartered, in a note first reported by Bloomberg.
“A consolidation scenario below $30,000 would necessitate absolute disaster in financial markets,” Kuptsikevich added.
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Last week, Arthur Hayes, the co-founder of crypto exchange BitMEX, revealed that he fears the price of bitcoin and ethereum will drop even further in the coming months. Hayes expects the price of bitcoin to fall to $30,000 over the next two months, with the price of ethereum falling to $2,500 per ether.
“Bitcoin and Ethereum will bottom long before the Fed acts and changes its policy from tough to loose,” he wrote in a blog post, adding that he is betting on a “crash bitcoin and ethereum prices by June.
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‘Absolute Disaster’: Serious Crypto Price Crash Warning Issued After Bitcoin, Ethereum, BNB, XRP, Solana, Cardano, Luna And Avalanche Freefall
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