Monday, June 20, 2022

Crypto winter: Bitcoin plunges below $18k in record-breaking rout

 

Bitcoin  has dropped over 33% this week and has failed to hold support at the 2017 cycle high. It is now trading below $18,000, with the total crypto market cap hovering near $800 billion. Never dropped this low in its 12- year trading history.

We are seeing more liquidity driving prices and sentiment lower, triggering more liquidations and negative sentiment some flushing out is needed still, but this will exhaust after some stage.

The volatility has been aided by the US Fed’s interest rate hikes as well as liquidation issues faced by centralized Defi platforms such as Celsius and the possible collapse of 3AC venture capital.
Total liquidations were $566.7 million in the past 24 hours with Bitcoin ($271 million) and Ether($192 million). A mix of toxic bad news cycles and high-interest rates has been deleterious to riskier assets like crypto.

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