Bitcoin hits 18-month low at less than $25,000, altcoins are in free fall, with many coins posting double-digit price losses
Bitcoin drops below $25,000 due to inflation scare
Bitcoin hits 18-month low at less than $25,000, altcoins are in free fall, with many coins posting double-digit price losses, and this has led to a massive drop in total cryptocurrency market cap, which has fallen below 1 trillion dollars.
Bitcoin at its lowest level in 18 months
Friday's US inflation news (a record increase of 8.6% YoY) kicked off a new wave of losses for Bitcoin, which initially dropped from $30K to $29,000.
However, what has happened (and continues to happen) over the past few days has been significantly more violent, as Bitcoin's free fall intensified to $27,000 on Saturday and $26,000 on Sunday, liquidating more than $50 billion over the course of the year. Two consecutive days.
Today, Monday, the currency continued to decline to fall to the lowest level since March 2020 at $ 24,500, which means a decline of more than 10%, and its market value also fell below $ 50 billion, the only good news at the moment is that the dominance of Bitcoin over altcoins remained above 47% where they suffered the most.
As it usually happens when Bitcoin goes down it does Crypto Others too, most of whom were wearing red over the weekend, but were falling back every day.
Total cryptocurrency market cap has shrunk to less than $1 trillion, and lost more than half of its $2.8 trillion market cap from its peak in November 2021, data shows that in the past 24 hours, Bitcoin contracts were liquidated by $163 million and Ethereum contracts were liquidated by $143 million.
US inflation data
Bitcoin's decline is mainly due to the effects of the impact of US inflation data, as sentiment spread from the stock market to the US crypto-asset market, and in general, liquidity is being withdrawn from all asset classes in the US.
At the moment, the US economy is recovering, the US dollar is in a high inflation range and the cryptocurrency is under pressure, and this trend is likely to continue for a while,
In addition to high inflation, experts also believe that the macroeconomic performance of the United States together with the international political and economic landscape may accelerate the accumulation of risks in the short term, and venture capital institutions have begun counterproductive processes to balance global risk assets, the first to bear the brunt of liquidity Withdrawn from the cryptocurrency market in the short term, in addition, the recent trend of US monetary policy and regulation has been extremely unfavorable to cryptocurrency, there has been a significant outflow of liquidity in assets.
One of the things that has been bad for the crypto world lately is that data shows that more and more people in the US are entering the crypto-asset industry with a very young average age, many of whom are teenagers or even younger, and are using social networks to promote and market Bitcoin and other cryptocurrencies. Thus, crypto assets such as currencies and the resulting financial regulatory risks make rational investors fear and accelerate the process of short-term money exit from the market.
A professional technical and economic analyst in global financial markets since 2004. He holds a Master’s in Business Administration from the American University in Cairo. He works as an economic writer and technical analyst for many international financial companies. He writes daily economic and technical analyzes for many Arabic and English websites specialized in the field of stock exchanges and financial markets.
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