Bitcoin and other cryptocurrency prices suddenly dropped lower sharply after weeks of uneasiness.
The bitcoin price dropped under $30,000 per bitcoin as smaller cryptocurrencies, including Binance’s BNB, ethereum, Cardano, and dogecoin, reported double-digit rate losses, losing $200 billion in value last week.
The sudden bitcoin and crypto decrease matches with a global stock market sell-off. Besides, the Dow Jones Industrial Average saw its most significant one-day point drop Yesterday since October. It resulted from fears that the highly contagious Covid-19 Delta variant might set back economic recovery efforts.
Overview of The Cryptocurrency Market
In the crypto top ten, ethereum compete for BNB, and Cardano drove the market lower with over 10% sell-off. In comparison, ethereum showed around 8% lower. Ripple’s XRP was 10% lower, with Elon Musk’s project dogecoin off by 8%. The bitcoin price decreased by just higher than 6%, adding to losses of 11% this past week.
Senior financial analyst at FxPro, Alex Kuptsikevich, said that Bitcoin’s motion range declined, forming a powerful exit. He also warned that the bottom might fall out of the bitcoin market.
He also talked about a sequence of increasingly lower highs which is an important selling factor. There is a fear of missing crypto, which is why consolidation is frequently frustrating for speculators. The main question is if bitcoin falls near $23,400, as it paused last Christmas. He said that it is impossible to rule out that with colossal liquidation of margin positions because the price will get closer to the gap at $19,000. Overall, such a reversal might be a copy of the 2018 crypto winter. It might be opening possibilities for a price collapse to near $10,500 and canceling the rally after 2020.
The bitcoin price appears to be frightened by a halt order issued to BlockFi by the New Jersey Office of the Bureau of Securities last night.