Bitcoin price crash below the $22,000 is bringing down major players in the cryptocurrency market. Crypto tech companies like Celsius and Coinbase are facing a liquidity crisis amid a crypto winter. Bitcoin’s slip to the $21,000 mark extended sharp declines from the previous day, sinking deeper into 18-month lows.
According to data from CoinMarketCap, the total value of all digital tokens (combined) plunged below $1 trillion for the first time since early 2021. At the time of writing this writing, BTC was trading at $21,127. In the last seven days, the most loved cryptocurrency has lost 30.17% of its value. Ethereum is also plunging. It has lost 36% of its value in the past week and is currently trading at $1,140.
Bitcoin and Ether’s record deep dives are having repercussions in the broader crypto market. It has consequences in the altcoins. TRON is down by 12.81% in the last 24-hours, Cardano 2.55%, and XRP lost 1.39%. Polkadot is surprisingly in the green, despite being down by 20.74% in the past week. It’s up by 1.29%. Dogecoin is the biggest loss. It’s down by 34.20% in the last seven days.
Meanwhile, speculations are that Bitcoin may be in the key bear market. On-chain analytics resource Material Indicators suggest that the market had reclaimed the 200-day simple moving average (SMA). This is an important feature of Bitcoin bear markets that was supported throughout previous price cycles. Material Indicators tweeted that it was too early to tell if the 200 SMA would continue to provide an attractive zone.
A social media crypto analyst outlined that the market gives a 96% probability that the Fed delivers a 75bps hike today (Wednesday). The market recently saw pricing in a 50bps hike but last week’s hot inflation data changed that. The analyst believes a 50-point rise would mean that both stocks and crypto should rally really hard.