The cryptocurrency market has seen widespread adoption and success, climbing through the ranks of the financial markets, but investors have had their share of disappointments in the preceding year.
The majority of the crypto market has resumed its downward trend after losing the psychological support price level of $20,000, with Bitcoin leading the pack. Bitcoin (BTC) declined 8% on Bitstamp on June 18 from $20,758 to $18,784, according to TradingView.
The bulk of other big cryptocurrencies have lost even more ground in the wake of the flagship cryptocurrency. In the past 24 hours, Ethereum, Solana (SOL), Polkadot (DOT), Ripple (XRP), Cardano (ADA), Binance Coin (BNB), and Avalanche (AVAX) have all dropped 9%, 5%, 6%, 5%, 7%, 8 and 7%, respectively.
The crypto market has already lost nearly $100 billion that it gained following the Fed’s interest rate hike, extending the heightened macro-driven volatility that had been widespread with growing inflation and predictions of interest rate hikes in the US.
The market calamity has resulted in a considerable volume of liquidation as traders lose their bets on the price of Bitcoin and other cryptocurrencies rising in the last 24 hours. According to coinglass data, long order liquidations account for 77.6 percent of total liquidations.
80,156 traders from around the world liquidated their futures orders, bringing the total amount liquidated to about $281 million in the past 24 hours.
The most immediate threat to markets is Fed quantitative tightening and regulation, and investors are clearly avoiding high-volatility assets.
The market has been extremely volatile as Bitcoin struggles to maintain gains around the crucial $20,000 support level, and now that it has been lost, analysts expect that prices will continue to fall as Bitcoin attempts to form a bottom before skyrocketing once more.