Home Markets Sudden Crypto Market Drop Sends Bitcoin Below $22,000

Sudden Crypto Market Drop Sends Bitcoin Below $22,000

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Bitcoin Friday fell to its lowest level in more than three weeks, plunging below $22,000 amid a sudden crypto selloff in early European trading.

Bitcoin plunged from $22,738 to below $21.12.34 as of 2:30 a.m. ET, according to data from CoinDesk. Earlier in the morning, the cryptocurrency fluctuated between $21,500 and $22,000.

It comes shortly after the largest digital coin in the world broke above the $25,000 level for the first time since June following a rise in US equities.

Ether rose from $1,808 to $1,728 at the same time before recording a muted bounce. It had slipped again, falling further to $1,683.90 as of 4:00 p.m. ET.

A specific cause for a drop at that time, which also sent Binance Coin, gimbal and Solana falling, was not immediately clear.

“This does not show the pattern of a flash crash, as assets did not immediately rebound sharply but fell further in the hours that followed,” said Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown. . “It seems likely that this was the result of a large sale transaction, absent other more external factors.”

Bitcoin and Ether ended in the red on Thursday, but Ether has surged more than 100% since mid-June.

Yu Chun Christopher Wong | S3studio | Getty Images

Streeter said it looked like Cardano took the first dip down, followed by Bitcoin and Ether, then smaller coins like Dogecoin.

“This cool chill has descended amid fears that the market is heading for a crypto winter,” she added. “Although at $21,800 Bitcoin is still a long way from its June low of less than $19,000, volatility is once again ravaging the market.”

Digital coins can also follow stocks down.

“U.S. stock markets have retreated since Wednesday’s release of July Fed meeting minutes, the bottom line being that the Fed is unlikely to end rate hikes until inflation subsides. under control across the board, with no indication of future rate increases either,” Simon Peters, crypto market analyst at eToro, told CNBC.

“With the close correlation between US equities and crypto over the past few months, I suspect this has trickled down to the crypto markets and that is why we are seeing selling. The trend may also have exacerbated by the liquidation of long positions in bitcoin perpetual futures markets.

Citing data from Coinglass, Peters said Friday was the biggest liquidation of futures long positions since June 18, also the date bitcoin hit its year-round low. $17,500.

Bitcoin and ether ended in the red on Thursday, but ether has surged more than 100% since mid-June as investors brace for a massive ethereum network upgrade.

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