A strong selling pressure overnight has pushed the crypto market into the red over the last 24-hours. Bitcoin lost 5.68%, while Ethereum fell by 6.10%. The top two cryptocurrencies have lost nearly 16% in the last seven days with slight gains and losses.
Analysts say that last week’s Bitcoin 2022 Conference in Miami failed to entice investors. As the event came to an end, bears came in force and pushed the Bitcoin down again. Weekend selling led to spikes in liquidations of leveraged BTC derivatives traders on exchanges. More than USD 40 million of bitcoin, as per data from Coinglass, long positions were liquidated during 12-hour periods on Friday and Monday.
Bitcoin might be taken as a hard asset to tackle rising inflation but it could force the US Federal Reserve to act aggressively to bring down prices. Thus, this could hit the top crypto. Antoni Trenchev, managing director at Nexo, believes the Fed is caught between a rock and a hard place. The Bitfinex crypto exchange trading team says there is a sense of nervousness that has crept into the market over the weekend amid low volumes. The team highlighted that rising concerns over the economic environment may become recurring themes for 2022. There may be outbreaks of episodic volatility in the months to come.
McKenna, a decentralized finance advisor, and crypto trader, highlighted that this has been the weirdest bear market he has ever seen. He said there is no sub $30,000. McKenna favors a choppy price action in this range.
The overall crypto market has been bathed in a splash of red.