Crypto Investors in panic as Bitcoin price drops below $18.5K
Top tier cryptocurrency Bitcoin fell below $18,500 for the first time in over 60 days. Bitcoin seems to be losing value among investors for a variety of reasons. Asset declines are, as always, directly related to the performance of the American stock market. Stocks fell after a turbulent trading session today, partly on fears that the Federal Reserve will continue to raise rates.
The day before, 103,741 traders were liquidated, bringing the total liquidation to $364.74 million. The largest single liquidation order occurred on Okex – BTC-USDT-SWAP worth $2.57 million
Bitcoin is on the verge of testing this year’s lows following a crypto selloff that has pushed the sector’s total market value below $1 trillion once again.
The largest digital token traded at around $18.5 thousand early Wednesday and has lost more than 6% of its value so far this week. Over the past 24 hours, cryptocurrency market caps have fallen by a similar amount, according to Coinmarketcap.
Bitcoin has already lost more than 60% of its value for the year, according to FTX exchange data. The cryptocurrency has suffered from industry bankruptcies and the sale of other crypto assets caused by the deteriorating global macroeconomic environment.
Since June, the collapse of the Terrastablecoin ecosystem, the Voyager Digital and Celsius network bankruptcies, the three arrows capital hedge fund collapse, and the bankruptcies of hedge funds have led to further declines in digital asset prices. Terra.
Real interest rates, considered the true cost of borrowing, are rising, putting pressure on various risk assets, including cryptocurrencies. Bitcoin’s price drop is nearing the low of about $17.6K reached in June, following an explosion at cryptocurrency lenders and hedge funds.
The fight against inflation initiated by the US Federal Reserve may not end until its due date.
Federal Reserve decision makers have been optimistic about the stock market for most of this year, giving traders advance warning (in the term “forward guidance”) of impending monetary policy changes. But that seems to be a thing of the past. Fed Chairman Jerome Powell declared in July that the central bank would no longer use forward guidance.