Bitcoin (BTC) fell overnight and the leading cryptocurrency fell to levels as low as $ 19,621, according to data from CoinMarketCap.
Last week was a bullish for cryptocurrencies, as most ended up in the green territory. BTC had also managed to stay above the $ 20,000 support after weeks of waffle above and below this price.
Bitcoin, however, has fallen 3.72% this morning over the past 24 hours and is trading close to its seven-day low of $ 19,341.23, indicating CoinMarketCap.
The market value of the largest cryptocurrency, Bitcoin, has crashed from as much as $ 1.27 trillion in November 2021 to below $ 377 billion today.
When it comes to Ethereum (ETH), the second largest cryptocurrency with a market value of 129 billion dollars, it has also fallen to around 1,068 dollars, a decrease of 6.7% over the last 24 hours.
This marks a fall of 78.14% from the highest record of $ 4,891.70.
In the middle of the bearish price action, more than 62,000 traders were liquidated in the crypto market, data from CoinGlass. Over $ 180 million has been liquidated in the same period.
Ethereum is leading nearly $ 62 million in liquidations in the last 24 hours, followed by $ 59.95 million in Bitcoin and $ 3.42 million in Solana over the same period.
Bitcoin, Ethereum faces a number of risks
The main drivers behind the bearish action are the declining crypto-trading volumes, the sales pressure from miners and high expectations of a new interest rate increase from the Federal Reserve.
The total trading volume of cryptocurrencies has fallen to just over $ 50 billion, a decrease of 86% from the highest level of almost $ 367.6 billion recorded on May 20, 2021, according to analysis data from CoinMarketCap.
The long-term bearish movement in the price of Bitcoin has also forced many miners to download their holdings to cover operating costs.
“With the loss of the $ 30,000 price level, miners and long-term owners (LTHs) have come under stress,” reads a recent report published by Glassnode. Long-term owners refer to Bitcoin holders who do not sell their holdings for months to years.
Currently, the long-term owners of Bitcoin face losses of up to 33%.
Finally, cryptocurrencies turned bearish after the 75 basis point increase announced by the US Federal Reserve last month. The Fed will meet again on July 26, with many waiting another 75-base hike.
This meeting can signal even more pain for all risk assets.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.
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