Bitcoin breaks $19,000, Ethereum falls below $1,000
According to experts, investor trust sank when the market capitalization went below $900 million and over $100 million in Bitcoin futures contracts were liquidated in the last 24 hours.
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The largest digital currency by market capitalization, Bitcoin (BTC), has pushed beyond $19,000 levels for the first time since December 2020, while the second largest cryptocurrency, Ethereum (ETH), has broken through the psychological $1,000 threshold.
According to Coinmarketcap data, bitcoin is currently down roughly 10% and trading at $19,040, after hitting a low of $18,905.
After hitting a low of $986, ETH is down roughly 10%, trading at $992.
The total market capitalization of cryptocurrencies has dropped 5% in the last 24 hours, and now stands at $853 billion.
According to experts, investor trust sank when the market capitalization went below $900 million and over $100 million in Bitcoin futures contracts were liquidated in the last 24 hours.
BTC dropping below the $20,000 area, according to Anndy Lian, Chairman of BigONE Exchange, may result in more liquidation triggers, especially for investors who are utilising leverage to short these positions.
"With rising inflation, rising interest rates, a forecast recession, an ongoing conflict, and the aftermath of COVID-19, BTC is being put to the ultimate test for the first time. "We also need some assurance regarding these macroeconomic worries in order for the BTC and crypto markets to rebound," Lian remarked.
As dealers hedge their positions, former BitMEX CEO Arthur Hayes predicts huge sell pressure in the spot markets as critical levels for BTC - $20,000 - and ETH - $1,000 collapse.
We can also anticipate that certain OTC dealers will be unable to hedge appropriately and may go out of business," he warns.
