As Bitcoin and Other Cryptocurrencies continue to Slump, Crypto Investors Loss $605 Million in 24 Hours.
Earlier today, just as the market was headed towards recovery after the May-June slump, which erased billions of dollars from the market value of 3 trillion, Bitcoin (BTC) and other altcoins dumped suddenly, leaving investors scratching their heads as their investments vanished into thin air.
Bitcoin took a new swing on Friday, with approximately $220 million liquidated from investors within 24 hours.
The Journey started yesterday when the primary cryptocurrency dropped to a new weekly low of $23,000 and continued retracing most of the day. BTC began to lose value faster this morning, declining to $22,800 before dropping to $21,454 at press time, recording a new low in over three weeks.
Last week, the king of cryptocurrency closed its two weeks consecutive streak of $23,000, which was the benchmark of recovery for the precious bear markets since 2014.
After the BTC decline in price, the total market cap fell below $1.1, currently standing at $1.035T, while other top cryptocurrencies like Ethereum followed suit, with a 3.8 percent drop. BNB also dropped to 11 percent, while SOL, ADA, and XRP dropped 14, 11, and 9 percent, respectively, following BTC’s footsteps.
The drops followed equity markets, as most of Europe and US equity-index futures fell. This again proved that crypto prices move according to US stocks.
According to a Bloomberg report, the massive sell-offs could be linked to uncertainty and fear among crypto investors as they are unable to get a “clear sense of direction of Federal Reserve monetary policy.”
Per the report, two executives from the Federal Reserve, James Bullard and Esther George, disclosed “divergent signals” on the size of the next interest rate hike. The report further noted that there is an ongoing stipulation that Jerome Powell, the Fed chair, may lean against the recent financial downtrend that has impacted the entire market over the past weeks to determine the rate.
Speaking on the matter, Craig Erlam, a senior market analyst at Oanda, noted that the market recovery trend was looking weak and has been for weeks.
“The recovery trend was looking weak and has been for weeks, but I don’t think that alone explains such a huge move all of a sudden,” he said.
Alex Kuptsikevich, a senior market analyst at FxPro told Bloomberg:
“The weakening of global equity indices and the deteriorating macroeconomic backdrop is a worrying factor, We believe we will see similar sharp market movements again in the coming months.”