270 billion dollars – this is how much the value of all cryptocurrencies fell within 24 hours, CNBC wrote on SundaySince then, another $23 billion has flowed out of the market, according to CoinGecko data. The reason is the same as in the case of classic stock markets. Friday’s economic data from the US was worse than anyone expected, about which you can read more in the text “Investors fasten their seat belts. The ‘fear index’ has shot up”. The market has clearly begun to expect that the United States will enter a recession, which is having a negative impact not only in the US but also around the world.
Watch the video Cryptocurrencies are supposed to change our world. But will it be for the better?
Cryptocurrency market crash. Bitcoin down sharply
Such huge losses on cryptocurrencies were largely caused by the declines in bitcoin, of course, but also in ethereum. In June, bitcoin cost over 70 thousand dollars. Today, it is only 52.8 thousand dollars and a drop of 9 percent in the last day. However, the changes are very dynamic, because in the last half hour the rate has fallen by another thousand dollars. In the last five days, the loss is as much as 16.78 percent. Ethereum, in turn, has fallen to 2.358 thousand dollars. This is a drop of 27.03 percent in the last five days and the weakest result since mid-January.
It’s a reminder that Bitcoin, and cryptocurrencies in general, are risky assets and are at the extreme end of the risk spectrum.
– said Tony Sycamore, market analyst at IG, quoted by Reuters.
Bitcoin is testing the limits. The last year has been a rollercoaster for the cryptocurrency market
You don’t have to look far to find confirmation of Sycamore’s thesis. At the end of January, bitcoin was valued at less than $40,000, and in September last year – at $25,000. In January, however, cryptocurrency-based ETF funds were approved, and this heated up the entire market.
In March, bitcoin reached a record valuation of over $75,000. Compared to this period, the loss is already 20%. But in annual terms, even despite the huge losses of recent days, bitcoin is up 85%, and since the beginning of the year, the profit is 21.7%. So, during the year, the bitcoin price was at peaks of $25, 40, 75 and 53 thousand. These are huge changes.
Tony Sycamore claims that the market is currently testing the bitcoin boundary at $53,000-54,000. He believes that maintaining these levels is necessary to prevent the price from sinking to $48,000.
