Bitcoin price falls below 22000 traders lose 600 million
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Bitcoin price falls below $22,000 – traders lose $600 million

Cryptocurrency traders are once again seeing a sharp decline in bitcoin price, following broad market momentum, falling 9.3% to a three-week low that fell below $21,400. This is the sharpest drop in two months as expectations of a tightening of the Fed’s position and aggressive anti-inflation measures reduced investor confidence in risky assets.

    Image source: Pixabay

Image source: Pixabay

Markets react quickly to changes in monetary policy. The gradual recovery of stocks and the cryptocurrency market from the May-June collapse was based on market confidence that interest rates will rise throughout 2022 and that measures will be taken to curb inflation. This would contribute to a controlled return to normal on the markets.

From May 5 to June 19, bitcoin fell more than 50% from $39,676 to $18,958, but then began a gradual, stable strengthening of bitcoin price to $24,000 by the end of July. Now the recovery is faltering. Today’s downturn has caused bitcoin traders to lose about $600 million in the past 24 hours, according to data from Coinglass.

Expectations that the Fed will hike rates more than previously planned == and heightened risks of a continuation of these policies into 2023 mean that the Fear and Greed Index for Bitcoin is now at 33 points, down from a 9-point decline 42 points in the previous week. Low scores on this index indicate increased fear, while higher scores correlate with increased greed (and therefore more aggressive investing).

Bitcoin may be the leading currency by market cap, but the cryptocurrency market is much bigger than it. The second largest cryptocurrency, Ethereum, which is now in a hype wave and gaining value due to the imminent completion of its next update, fell 9%.

Other promising cryptocurrencies like Algorand fell 10.5%, while lesser-known altcoins like Filecoin FIL fell a staggering 18.5%. Cryptocurrency Flow, which recently partnered with tech giant Meta*, fell by 17% in price. The token Ethereum Classic (ETC), which is considered an alternative to Ethereum and can get a second life thanks to GPU mining, collapsed by 15%.

No one knows how and when the market will correct, it primarily depends on investor sentiment. However, with inflation still out of control and doubts that changes in monetary policy will help reduce inflation, care should be taken not to invest more than you can lose.

* It is included in the list of public associations and religious organizations for which the court made a final decision, activities on the grounds of Federal Law No. 114-FZ of July 25, 2002 “On Combating Extremist Activity”.

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Robbie Elmers

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

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