The cryptocurrency market saw $130 billion of its value wiped out in just 24 hours as leading cryptocurrencies continue a major sell-off.
CNBC reports that the cryptocurrency market has seen $130 billion of its value wiped out in 24 hours alone as leading cryptocurrencies continue an almost week-long sell-off. Bitcoin dropped by four percent to around $33,755.57, its lowest price since July 2021, while Ether dropped seven percent to $2,239.08 its lowest price since late July.
Cryptocurrencies seem to be moving in the same direction as stocks, which have continued to fall since the start of the year and just had their worst week since March 2020. Investors have been selling off risk assets including tech stocks in preparation for tighter monetary policy from the Federal Reserve and an increase in interest rates.
Vijay Ayyar, vice president of corporate development and international expansion at the crypto firm Luno Global, commented: “Bitcoin and crypto have been reacting much more violently, given the nature of the asset class and we’re likely to test 30-32K given current sentiment and momentum.”
Ayyar added that if Bitcoin manages to maintain a price point above $30,000 over a time frame such as one week, that should set a new base point at that level from which the market can move higher. He added that it may be quite a while before the market turns bullish due to the lack of confidence across the industry right now.
However, other analysts believe that the price of Bitcoin could fall well below $30,000. John Roque of 22V research commented: “It’s a decent idea to understand what such a down move would mean this time. A 78% decline from the bitcoin high of nearly $69,000 would imply a potential downside figure of about $15,000. It’s probably safe to say that not one bitcoin bull has that figure in their model. To be sure, we don’t either… but we think it’s worth keeping in our back pocket in case we need it.”
Read more at CNBC here.
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