Home Markets $80 Billion Vanished From Crypto Markets as Bitcoin Falls to 6-Week Low

$80 Billion Vanished From Crypto Markets as Bitcoin Falls to 6-Week Low

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$80 Billion Vanished From Crypto Markets as Bitcoin Falls to 6-Week Low

After the recent stagnation, bitcoin finally started to move and fell to a six-week low below $20,000.

Most altcoins are also in the red. Ethereum fell to $1,500, while SOL, ADA, and AVAX fell as much as 8% in one day.

Bitcoin fell below $20,000

Last week was particularly damaging for the main cryptocurrency, which fell from $25,200 to $21,000 in a matter of days. Since this heightened volatility, the asset has calmed down and spent most of the following days trading in a range between $21,000 and $22,000.

He tried to knock down this last Thursday but was stopped short. As such, it was pushed back to $21,500, as reported yesterday.

However, Jerome Powell address the nation and reiterated the Fed’s previous statements about trying to bring inflation down to 2%. Although this has been said many times in the past, it had an immediate effect on the price of BTC.

Within hours, bitcoin fell over $1,000 and fell below $20,500. The situation worsened earlier today when BTC fell below $20,000 for the first time since mid-July. Somewhat expectedly, this caused millions of dollars in liquidations.

At present, it has rebounded and is trading just above that coveted line, but its market capitalization has fallen below $400 billion.

BTCUSD.  Source: Trading View
BTCUSD. Source: Trading View

Alts See red

As typically happens when BTC heads south, so do most altcoins.

Ethereum was among the top performers until recently, perhaps fueled by the hype around the upcoming merger. As such, ETH had surged above $1,700 two days ago. Earlier today, however, the second-largest crypto fell below $1,500, losing over $200 during that time.

Cardano is down 8.5% in one day, Solana 7% and Avalanche 8%. Binance Coin, Ripple, Dogecoin, Polkadot, Shiba Inu, and Polygon are also deep in the red, albeit with somewhat less harmful declines.

Alternative low- and mid-cap coins are in a similar unfavorable state. As a result, the overall crypto market cap saw over $80 billion evaporate in a day and dipped below $1 trillion for the first time in nearly a month.

Presentation of the cryptocurrency market.  Source: Quantify Cryptography
Presentation of the cryptocurrency market. Source: Quantify Cryptography
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Cryptocurrency charts by TradingView.

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