Bitcoin fell below 21000 today and the entire cryptocurrency market

Bitcoin fell below $21,000 today and the entire cryptocurrency market collapsed below $1 trillion

On Tuesday, the cryptocurrency market continued to fall and accelerated late last week on news of upcoming US monetary tightening amid record inflation. Today, bitcoin price briefly dipped below $21,000, then recovered slightly and then started falling again as investors rushed to get rid of risky assets.

    Image source: Pixabay

Image source: Pixabay

According to data from Coinbase, the world’s largest cryptocurrency is down about 10% over the past 24 hours, while Ethereum is down more than 6% over the same period. At the time of publishing this material, they are spending around $22,350 on one bitcoin and around $1180 on Ethereum.

As informed Kommersant, citing data from CoinMarketCap, on June 13, cryptocurrency market capitalization fell below $1 trillion for the first time since early last year, to $960 billion, the lowest since January 13, 2021.

In just five days, the cryptocurrency market has lost more than 20% of its value, while the capitalization of the largest cryptocurrencies has declined by 25-33% and their value has updated its lows in the last 1-1.5 years. In particular, the cost of Bitcoin fell by almost 24%, Ethereum – by almost 35%, the prices of Binance Coin, XPR, Solana, Dogecoin, Polkadot fell by 25-33% to the level of the end of 2020 – the first quarter of 2021.

The current situation caused panic among market participants. The Celsius Network platform announced the suspension of withdrawals, inter-account transfers, as well as the exchange of tokens for national currencies. The largest crypto exchange Binance suspended the withdrawal of bitcoins, but allegedly for technical reasons, Coinbase announced the suspension, and Gemini and announced plans to cut staff by 10% and 5%, respectively.

The market started a really steep decline along with a belated awareness of all the risks by ordinary investors, says Dmitry Machikhin, CEO of Bitnalog, who explained what is happening with expectations of US Federal Reserve monetary policy tightening due to inflation.

According to Grigory Klumov, founder of the stable cryptocurrency platform STASIS, due to inflation in the United States, cascading sales of bonds began, and the share price of both the technology sector and other markets fell. Due to the large-scale liquidation of margin positions in the market, the decline in cryptocurrencies has intensified. Margin positions are sold by investors of all categories, including collective and private mutual funds as well as HNWI.

According to Klumov, reaching the $21,000-22,000 per bitcoin level will become critical if a large number of margin positions are liquidated, and therefore the price could drop to $17,000-18,000 in the short term.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

Add Comment

Click here to post a comment