Bitcoin crashes below $39,000

The crypto market was swept by a bloody wave of sales. Bitcoin fell below $39,000, the fall also affected stocks of mining companies.


Within a few hours, bitcoin lost almost $3,500 in price, falling to a six-month low of just over $38,000. Such a fall led to a large-scale liquidation of positions on crypto exchanges. The volume of liquidation exceeded $700 million in 24 hours. Most of the liquidations rook place on Binance.

The fall also affected other cryptocurrencies. Thus, ETH dropped 12% to $2500, Binance Coin lost 16%, Solana lost 17%.

Following cryptocurrencies, stocks of public crypto companies also went down. Thus, the stock of the US-based crypto exchange Coinbase lost 5.6% during premarket trading hours. Riot Blockchain and Marathon Digital stocks fell more than 8%.

US economic agenda remains the main reason for crypto market fall. Investors expect the Federal Reserve to increase the key rate in the near future and to accelerate the curtailment of the asset buyback program. According to Arcane Research, the correlation between bitcoin and S&P500 has reached a record high since 2020. In addition, almost half (43%) of the trading volume on the crypto market takes place during working hours in the United States, which indicates the dominance of US investments and traders on the crypto market.

According to Kraken, in 2022, bitcoin can go either bullish, with its rate reaching $100,000, or bearish, suggesting a sharp fall to $26,000.

Via: 2Coinfox.info

Share this article:

Leave a Reply

Your email address will not be published.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.