Crypto Update: Bitcoin And Ether Rebound After Record Rout

Bitcoin has plunged through several closely watched price levels to the lowest since late 2020 as evidence of worsening stress within the crypto industry continues to mount amid tightening monetary.

The largest digital token by market value fell 15% to $17,599 on Saturday, marking a record 12th consecutive daily decline according to data from Bloomberg. This is still only the largest drop since Monday. The currency recouped some of those losses and was trading at $19,075 as of 8:30 a.m. in Singapore on Sunday.


Ether fell 19% to $881, the lowest since January 2021, before climbing 11% to $1,005 on Sunday morning in Singapore. The two crypto market metrics are both down more than 70% from all-time highs set in early November.

“What we’re seeing is more selloffs driving down prices and sentiment, which is triggering more selloffs and negative sentiment – ​​there’s still some housekeeping to do, but it will run out at some point,” said Noelle Acheson, head of market intelligence at Genesis, one of the largest and best-known digital asset lenders.

Total liquidations in the crypto market stood at $566.7 million in the past 24 hours, with Bitcoin and Ether at around $271 million and $192 million respectively, according to data from Coinglass.

The latest leg down pushed Bitcoin below $19,511, the high the coin reached during its last bull cycle in 2017, which it reached at the end of that year. Throughout its roughly 12-year trading history, Bitcoin has never fallen below previous cycle peaks.

Altcoins were no exception to investors’ soured appetite following Bitcoin’s fall, with every token on Bloomberg’s Cryptocurrency Monitor trading in the red. Cardano, Solana, Dogecoin and Polkadot saw declines of between 12% and 14%, while privacy tokens such as Monero and Zcash lost up to 16%.

A toxic mix of bad news cycles and higher interest rates hurt riskier assets like crypto. The Federal Reserve raised its main interest rate on June 15 by three-quarters of a percentage point – the biggest increase since 1994 – and central bankers have signaled that they will continue to hike aggressively this year in the fight to rein in the ‘inflation.

“Investors continue to position themselves defensively after last year’s liquidity-driven digital asset bull market,” Alkesh Shah, head of crypto and digital asset strategy at Bank of America Corp., said Friday. in a note. “While painful, shedding scum from the industry is likely healthy as investors focus on projects with clear roadmaps for cash flow and profitability versus pure revenue growth.”

Wider signs of stress emerged with the collapse of the Terra blockchain last month and worsened this week following the recent move by crypto lender Celsius Network Ltd. to stop withdrawals.

Adding to the mood, crypto hedge fund Three Arrows Capital suffered heavy losses and said it was considering asset sales or a bailout, while fellow lender Babel Finance followed in Celsius’s footsteps on Friday. . Even long-term holders who have avoided selling so far are under pressure, according to researcher Glassnode.

“After Celsius, the focus in recent days has been on Three Arrow Capital and Babel Finance.” said Teong Hng, managing director of Hong Kong-based crypto investment firm Satori Research. “Su Zhu, the founder of 3AC appears to be missing out on action, after allegedly suffering huge losses due to a massive crypto decline this round.”

Stablecoins – a type of crypto asset tied to the value of a fiat currency like the US dollar – have also struggled.

All four major stablecoins recorded net outflows in exchange last week that were 4.5 times larger than the previous week, Bank of America’s Shah said, after recording net outflows in eight of the previous 10 weeks. . Crypto traders often rely on stablecoins to move funds around the ecosystem without needing to exit in traditional currencies, so persistent outflows indicate investors remain on the defensive, he added.

Even with the piercing of the key $20,000 level, historical data shows that Bitcoin can find key support around this mark, as previous selloffs show where the token typically finds points of resilience, according to Bloomberg analyst Mike McGlone. Intelligence.

Bitcoin could “build a base around $20,000 as it did around $5,000 in 2018-19 and $300 in 2014-15,” he said in a note on Wednesday. “Falling volatility and rising prices are hallmarks of the maturing digital store of value.”

Still, the digital currency is rapidly approaching its December 2020 low of $17,589. It traded as low as $13,222 the previous month that year.

The crypto market is now at a fraction of its highs at the end of 2021, when Bitcoin was trading near $69,000 and traders were pouring money into speculative investments of all kinds. The total cryptocurrency market capitalization was around $881 billion on Sunday, up from $3 trillion in November, according to pricing data from CoinGecko.

We wish to say thanks to the author of this post for this amazing web content

Crypto Update: Bitcoin And Ether Rebound After Record Rout

Explore our social media profiles and also other pages related to them