Bitcoin Falls Below Crucial Support, Crypto Loses $50 Billion

The broader cryptocurrency market has come under strong selling pressure, correcting by 6% in the last 24 hours and losing $50 billion. Bitcoin (BTC) has also fallen by 4.5% and has fallen below its crucial support at $17,000. With the latest price drop, BTC has given up all weekly gains and is now in negative territory.

On the other hand, altcoins have posted even steeper falls as concerns grow that the digital market will still face more pain ahead. The developments surrounding Binance have kept crypto investors on the edge of their seats. Friday 16 In December, Binance’s Proof-of-Reserves auditor, Mazars Group, suspended ties to the exchange.

This has also thrown a negative feeling in the minds of investors. The latest fall in the crypto market also follows the sharp correction on Wall Street. The Dow Jones (INDEXDJX: .DJI ) ended another 1% negative on Friday. This price drop comes as the economy endures the aggressive tightening by the Federal Reserve.

Fairlead Strategies Senior Analyst Will Tamplin believes that Bitcoin now has the risk of nipping at its November lows of $15,700 again.

Altcoins See Bigger Drops Than Bitcoin

Altcoins have seen an even bigger drop compared to Bitcoin. The world’s second largest crypto Ethereum (ETH) has fallen more than 7.5% below the $1200 level.

Many other top-ten altcoins are facing double-digit percentage losses. Altcoins such as Binance Coin (BNB), Dogecoin (DOGE), Polygon (MATIC), Cardano (ADA) and others have dropped by a staggering 10-15%.

The collapse contagion has already spread to other crypto firms with crypto lenders like Genesis running into trouble again. Many experts believe that the contagion may spread further into the market in the future. Noelle Acheson, author of the “Crypto is Macro Now” newsletter, wrote: “There may be some bad contagion news yet to come. But most investors who were going to sell have done so.”

Bhushan is a FinTech enthusiast and has a keen flair for understanding the financial markets. His interest in economics and finance draws attention to the emerging markets of blockchain technology and cryptocurrency. He is continuously in a learning process and stays motivated by sharing his acquired knowledge. In his spare time, he reads thriller novels and sometimes explores his culinary skills.

The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.