Panic as $400 billion is lost in crypto market, Bitcoin sinks below $30K

The U.S Federal Reserve’s aggressive monetary tightening coupled with recession fears led to a sell-off on both traditional financial markets and bitcoin on Tuesday.

Bitcoin’s price has fallen to its lowest point of the year, a 10-month low. It hit $30,301 on July 20, 2021, the last time it fell below the $30k threshold before rebounding.

Ripple’s price has fallen drastically, as have the prices of Solana, Cardano, Shiba Inu, Polkadot, and several other altcoins. Waves Protocol, on the other hand, is one of the few winners.

  • With a total value of close to $570billion, Bitcoin accounts for more than a third of the entire cryptocurrency market. Ethereum, the second-largest cryptocurrency in the world, has also seen its value slip by more than 20% in the last week.
  • For the day 288,513 traders were liquidated, the total liquidations come in at $1.08 billion. The largest single liquidation order happened on Bitmex – XBTUSD value – $6.30 million. The global crypto market valuation is $1.46 trillion after losing over $400 billion within a week.
  • Historically, the cryptocurrency market has been characterized by volatile trading, but 2022 has largely been quiet.
  • The cryptocurrency market is being called a bear market by many market pundits when Bitcoin prices decline. Despite the sharp decline, technical bias suggests only a breach of $28.8K would invalidate the bullish Bitcoin triangle thesis, which would validate the bear market view.
  • With its recent decline, the pioneer crypto has a real chance of falling out of the range where it’s been trading for the past year and reversing the bull run that took it to a record of just over $69,000 in November.
  • The 40-day correlation between Bitcoin and the S&P 500 is at an all-time high of 0.82, according to data compiled by Bloomberg. This means any additional decline in equity sentiment would drag Bitcoin down as well.

It is important to also recognize that cryptocurrency market volatility has increasingly been influenced by wider trends, as professional investors, such as hedge funds and money managers, become more involved in trading what was formerly a hobby for individuals and enthusiasts.

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