Bitcoin (BTC) has once more tanked below the $20,000 level after a week long struggle. The cryptocurrency market along with Ethereum (ETH) and popular altcoins are swimming in a sea of red, yet again.
The digital asset woes continue as the global crypto market cap declined over 4.50 per cent in the last 24 hours. After a brief spell of hovering marginally above the $900 billion mark, the total crypto market capitalization is down to $874.24 billion. However, the total crypto market volume has witnessed an increase of 2.23 per cent over the past day to stand at $56.42 billion.
The turmoil in the market has rendered many crypto companies on the verge of bankruptcy. Experts have suggested that the recent turbulence in the crypto market pose a severe financial threat due to the heightened volatility, structural vulnerabilities, and its increasing links to the traditional financial market. Recently, The Financial Stability Board (FSB), reported,
“Crypto assets may affect global financial stability due to their scale, structural vulnerabilities and increasing association with the traditional financial system.”
Bitcoin Continues to Shrink
According to CoinMarketCap, Bitcoin (BTC) shrank 4.44 per cent in the last 24 hours to currently trade at $19,640. The flagship token tumbled over 4.50 per cent in the last 7 days. In the crypto market, Bitcoin’s dominance fell 0.04 per cent over the past day to 42.83 per cent. Indian cryptocurrency exchange, WazirX, noted that the BTC trading charts indicate that the cryptocurrency may fall further if the selling pressure continues.
Despite rising above $22k, Bitcoin (BTC), tussled to take off plunging below $20,000 once again. The BTC market sentiment also weakened as fear crept in with the drop in prices. Immediate support for Bitcoin (BTC) is expected at $17,700. In a statement, WazirX, said,
“On the daily time-frame, the BTC chart is traversing within the descending channel pattern. The daily RSI is approaching the oversold zone and we could expect investors to re-enter at this level.”
Edul Patel, CEO of crypto investing platform Mudrex opined that after following the recent run towards $22,000, Bitcoin has again descended back to the $19,000 level on Monday. Patel reiterated,
“If the price drops below the current level, we might see BTC falling to US$18,000 as bearish sentiment continues in the market.”
Experts Anticipating the Upcoming US CPI Data
Shivam Thakral, CEO of crypto platform BuyUcoin, explained that the US Consumer Price Index (CPI) inflation numbers for June 2022 expected to be announced tomorrow may also have a significant impact on the crypto markets, particularly Bitcoin price. He added,
“The U.S. CPI data on July 13th will be the next trendsetter for the crypto market.”
Ethereum (ETH), plummeted over 7 per cent in the last 24 hours to $1,061. The second largest cryptocurrency fell nearly 7.09 per cent in the past one week. In the same time frame, major altcoins also lost in the range of 1-6 per cent forcing an immense selling pressure.