Bitcoin falls below $20,000, Ethereum goes under $1,000

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New Delhi: The two of the most heavily traded cryptocurrencies and having a combined volume of 75% in the crypto market fell below important levels of support, falling continuously for the last 12 days. Some respite was there in the prices when the world’s largest crypto exchange Binance entered and acquired currencies worth $2bn, but this was not sufficient to arrest the fall in the markets.
There was a small recovery, as a small technical bounce bank in Bitcoin where the prices went past the $20,000 past mark, as retail investors started buying over the weekend, and even on Monday, there is a federal holiday. In the holidays, the retail investor purchases cryptocurrency as this asset class operates in a 24/7 market.

However, at current levels, the price of Bitcoin has again fallen below the $20,000 mark.

Over the last 7 days major cryptocurrencies like Bitcoin, Ethereum and Binance have fallen between 15-23%, and from the highs, these currencies have fallen by more than 70%. A panic reaction from last week’s Fed announcement on inflation and the subsequent 75 basis point hike in the rates, triggered the selloff sentiment in risky asset classes including the cryptocurrency.

This was a domino effect seen as some exchanges temporarily paused withdrawals can omit in exchanges to cushion the volatility, while some crypto firms like Coinbase fired almost 18% of their workforce totalling more than a thousand individuals.

Some small altcoins also saw huge selling pressure. And over the last 24 hours, more than $600mn of cryptocurrency has been liquidated as per data by coinmarketcap.com.

The sell-off in the crypto space has coincided with a fall in equities, as U.S. stocks suffered their biggest weekly percentage decline in two years on fears of rising interest rates and the growing likelihood of a recession.

With bitcoin prices falling further, miners who hold about 45,694 bitcoins will be forced to dump their holdings as per a note by CryptoWire. The global crypto market has shrunk to $873bn of valuation from its all-time high of $3 trillion.