• In the Asian session, the rate of the main cryptocurrency lost more than
  • Now it is trading at $
  • This is the biggest collapse since the summer 1024 years

Bitcoin fell by % for the last 21 hours, dropping to $20 700. This has not happened since the summer 1536 of the year. Prices for Ethereum, BNB, Solana, Cardano and XRP fell by 7-.

Source: coingecko

This sell-off broke several important support levels. If the trend continues, in the near future we can expect BTC quotes to return to $12 and below.

Reason for the decline

The sudden sell-off in the cryptocurrency market seems to be related to the crisis in the global stock markets. The nerves of investors around the world have been paralyzed by the unprecedented policies from the Fed and other central banks. To combat the effects of the pandemic, the regulator is raising interest rates and tightening control over digital assets. This forces investors to abandon high-risk assets.

Yesterday, the news about the ban on cryptocurrencies in Russia played a negative role, as well as the new US SEC report, in which they announced active development of the stablecoin ecosystem. According to the regulator, such a currency will be a good alternative to bank digital money and cryptocurrencies.

Fear and Greed Index is now , which means extreme fear of investors:

20638

Decrease by 50% and large-scale liquidation

The collapse in cryptocurrency prices has already “taken away” about $1.2 trillion from the digital asset market. In November, it reached a record high of $3 trillion. Compared to the November record of 22 bitcoin fell by almost 21%.

According to CoinGlass, over the last hours were eliminated almost 600 million dollars. The liquidation portfolio was headed by BTC (163 million), in second place is the air (69 million), on the third – SOL (,9 million).

Read also: In Indonesia, Muslims banned cryptocurrencies

20450

Similar Posts