With countries like Russia and Pakistan tightening their grip on cryptocurrencies, Bitcoin dipped below the $40,000 mark. BTC has plunged for the second time this month. According to CoinMarketCap, the popular crypto asset is trading at $38,759 and is down 7.36% in the last 24-hours. It is at a 6-month low from $43,328.
BTC’s deep dive has wiped out about $50 billion, but the total crypto market capitalization has been on a slow slide since November 2021. Analysts have attributed the latest price crash to macro indicators as tech stocks on Nasdaq have stepped into the correction territory. Bitcoin is expected to slide further as the Feds implement several interest rate hikes in the months ahead.
Rekt Capital has again highlighted the similarities with the BTC price that of late-September 2021. The popular crypto had plunged several times from $52,000 to about $41,300 before hitting the jackpot of $69,000 in early November.
Stack Funds said crypto markets had been awaiting critical support. And the current price crash is because of macro market weakness. It has caused a sell-off in risk assets. BTC can slip further to mid-30s. Meanwhile, CoinGlass says that in the last 12-hours, there have been nearly $600 million in liquidations. Bitcoin was leading the liquidation pack at $250 million.
Ether is also losing ground. The world’s second most popular crypto has taken a deep dive and is trading at $2,846, as per CoinMarketCap. It got dragged down nearly 9% by bitcoin’s tumble. Other altcoins, in particular Solana, Cardano, Binance Coin and Ripple have also fallen to severe price corrections between -6.3% to -10% in the past 12-hours.
The overall crypto market looks bullish as it has developed somewhat of resilience and can jump back.