As Bitcoin and other cryptocurrencies fall back into the red, the total value of daily liquidations has surpassed $350 million.
The crypto market was favorable yesterday as altcoins saw significant price surges. Ethereum surged by double digits to a multi-day high of nearly $1,650, possibly fuelled by the Bellatrix upgrade – the final stage before the long-awaited Merge. Ethereum Classic was another huge gainer, breaking through the $40 barrier.
However, the market attitude shifted hours following those advances. BTC was rejected at $20,000 and fell almost $1,500 to its lowest price position since late July of $18,500. Ethereum failed to capitalize on the excitement and fell below $1,500. ETC, along with a few other small- and mid-cap alts, fell by double digits.
The Year Has Not Been Favorable for Bitcoin and Other Cryptocurrencies
Bitcoin has already lost more than 60% of its value this year, according to FTX exchange data. This traditional crypto asset has suffere by a sell-off of other crypto assets caused by industry bankruptcies and a deteriorating global macroeconomic situation.
Prices for digital assets have fallen further during the month of June due to the collapse of the Terra stablecoin ecosystem, the bankruptcy of Voyager Digital and Celsius Network, the death of the hedge fund Three Arrows Capital, and the downfall of the hedge fund Terra. In addition, real interest rates are rising, putting pressure on a wide range of risk assets, including cryptocurrencies. Bitcoin’s price is falling, pushing it closer to a low of approximately $17.6K set in June following explosions at cryptocurrency lenders and hedge funds.
The US Federal Reserve’s war against inflation may not be done until its deadline is met. For the most part this year, the Federal policymakers have been bullish on stock markets, warning traders (using the term “forward guidance”) ahead of time of imminent changes in monetary policy. However, that looks to be in the past. In July, Fed Chair Jerome Powell said that central banks would no longer employ “forward guidance”.