Bitcoin and the rest of the crypto market have reached new lows not seen since early 2021 despite an initial rally from recent lows.
Bitcoin’s price has dropped below $30,000, reaching $27,757 just a few hours ago. Bitcoin hasn’t been this low since January 4th, 2021, retracing some of its early bull market gains.
The market catastrophe has resulted in a significant volume of liquidations as traders lose their bets on the price of Bitcoin and other cryptocurrencies heading higher in the last 24 hours. Long order liquidations account for 67.49 percent of total liquidations, according to coinglass data.
359,296 traders from around the world liquidated their futures orders in the past 23 hours, bringing the total amount liquidated to nearly $1 billion, nearly the same as the previous 24 hours.
The CPI report earlier today, which came in at 8.3 percent, rising interest rates, the Federal Reserve’s end of cheap money policies, dropping stock prices, and concerns over the TerraUSD (UST) stablecoin losing its $1 peg are all factors driving crypto market price movement.
The crypto “Fear and Greed Index,” which takes into account volatility, volume, social metrics, Bitcoin dominance, and Google trends data, has dropped to its lowest level since March 2020, and there appears to be little buffering the market from additional declines at the present.
The main threat to markets remains Fed quantitative tightening and regulation, and it’s evident that investors are avoiding high-volatility assets.