Bitcoin price has struggled to sustain above the closely watched $20,000 level, extending a period of pronounced volatility that saw massive swings over the weekend.
Bitcoin price has struggled to sustain above the closely watched $20,000 level, extending a period of pronounced volatility that saw massive swings over the weekend.
Biggest electronic money fell as much as 4.8% on Monday and was trading at $19,914 as of 7:32 a.m. in London. Ether has a 7.8% drop at one point but holds above $1,000. Altcoins like Solana, Cardano, and Dogecoin all fell.
Bitcoin fell nearly 15% on Saturday, then rallied back above $20,000 with a spike of similar magnitude on Sunday. The oscillator pattern shows that investor sentiment is still very fragile as the Federal Reserve and other central banks are doing their best to combat inflation with interest rate hikes draining liquidity from the market. market.
The Bitcoin T3 Volatility Index, a measure of the token’s 30-day expected volatility, has rebounded to mid-May highs, when the collapse of stablecoin TerraUSD rocked the market.
“The toxic combination of bad news cycles and higher interest rates has hurt the crypto market,” said Feroze Medora, APAC trading director at Cameron and Tyler Winklevoss crypto platform Gemini. and we can expect more volatility in the weeks to come on Monday.
When Bitcoin fell below $20,000 last week for the first time since late 2020, attention turned to a series of liquidations that threatened to worsen the crypto process. Data from Coinglass shows that a total of $879 million was liquidated over the weekend. Chiente Hsu, chief executive officer of decentralized finance platform ALEX said ‘Liquidation in pursuit’ Existing trading patterns of Bitcoin and Ether show that several major crypto holders are “pursuing” liquidation to profit from coercing other players.”
Adding to the uncertainty is the enormous pressure on DeFi applications. Their popularity as a source of high yields has skyrocketed as pandemic-era stimulus has fueled a record crypto boom.
Now, they are forced to take unprecedented measures to protect themselves against the chain reaction of liquidation. Cryptocurrency lending platform embedded in C Network Ltd. said on Monday that it needed more time to stabilize its liquidity and operations after freezing deposits in early June.
Arthur Hayes, co-founder of crypto exchange BitMEX, said on Twitter: “Expect more forced sales of Bitcoin and Ether as the market finds out who is swimming naked.
He said he doesn’t know if the sale has ended but “for skilled knife catchers, there may still be an additional opportunity to buy coins from people who have to evaluate every bid no matter the price.
