The cryptocurrency market recovered slightly after Bitcoin and other assets
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The cryptocurrency market recovered slightly after Bitcoin and other assets fell sharply over the weekend

Cryptocurrency market participants are keeping a particularly close eye this morning as the exchange rate of the main digital currency, Bitcoin, fluctuates. The industry fears that a fall in the long-term cryptocurrency price below $20,000 could cause serious turmoil in the entire market.

    Image source: Kanchanara/unsplash.com

Image source: Kanchanara/unsplash.com

At the London auction earlier this morning, bitcoin traded cheaper than the legendary $20,000 but after some regained positions. On Saturday, the cryptocurrency fell to $17,592.78, the first time it has fallen that much since December 2020. On Sunday, however, bitcoin showed some growth after the price rose 7.6% since last trade to $20,404. This year, bitcoin has lost almost 60% of its dollar value and 37% this month alone.

According to market experts, a further drop could lead to panic and a domino effect among investors, many large players have already found themselves at the critical limit and not only sold assets, but also suspended the withdrawal of funds from customers, for example. According to some experts, the situation on the market is in many ways similar to 2008, which managed to trigger a domino effect with a series of bankruptcies and liquidations. Less valuable cryptocurrencies also suffered, the value of which often depends on the Bitcoin price. Ethereum’s price was around $1,075 today, despite falling below the symbolic indicator for its niche of $1,000 over the weekend.

The decline in cryptocurrencies comes amid the sharpest weekly decline in US stock prices in the last two years, amid expectations of rising inflation, rising interest rates and an increased likelihood of a recession. In other words, the fall in the price of bitcoin was in line with the general trend of falling in value of high-risk assets.

In general, according to the Coinmarketcap portal, the market cap of the crypto market was $877 billion this morning, peaking at $2.9 trillion in November 2021. Add to this the panic in the digital currency market and the instability of stablecoins – it was assumed that their value should not remain unchanged under any circumstances. This suggests that investors have been hasty in withdrawing money from the sector as a whole.

    Image source: Coinmarketcap

Image source: Coinmarketcap

Although there is growing uncertainty in the crypto asset market in general, according to some experts, the rise in the value of the cryptocurrency on Sunday compared to Saturday’s indicators shows that the cryptocurrency has fallen to levels where many consider it attractive in the short term hold enough. long-term investments. It is noted that Bitcoin and other cryptocurrency prices remain extremely volatile. According to data at the time of writing the material on the Coinmarketcap portal, Bitcoin is worth more than $20,600.

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About the author

Robbie Elmers

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

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