Bitcoin Price Drops
During this period of high volatility, traders liquidated their portfolios, with Bitcoin falling below $20,000 for the first time in six weeks, making leveraged traders cheap. Cleared over $400 million worth of ports.
Previously, Bitcoin has been relatively stable after falling to the $4,000 mark and trading around $21,000 for a while before reaching the $22,000 mark in recent days.
Bitcoin has since moved to 21,500 yesterday as Fed Chairman Jerome Powell warned of inflation. The Bitcoin price immediately dropped more than $1,000, causing the Bitcoin price to fall below $20,000 for the first time since mid-July.
After Bitcoin’s price drop, other coins followed, with ETH, SHIB, AVAX moving downwards. ETH dropped below $1,500 for the first time after climbing to $1,700 in a short period of time. how many days
In the wake of the crypto market facing a period of sudden price drop, the market capitalization has dropped by more than $10 billion.
informationCoinGlass also reveals that the falling crypto prices have led to losses for leveraged market investors. Over $400 million was cleared, 125,000 traders lost and invested over $3.5 million in forced-sell from BTC/USDT trading pair OKX.
Is the Fed the cause?
Earlier, it was reported that Fed Chairman Jerome Powell, or the Federal Reserve. He said the inflation rate remains high and the Fed is expected to continue to take austerity measures in order to reduce inflation to 2%.
After the Fed spoke about its inflation-cutting measures. Investors were stunned. The Nasdaq was down 4%, causing the crypto markets, especially Bitcoin and Ethereum, to drop below 4% and 8% during the news.
Although inflation is likely to drop, Powell has cautioned investors not to be in a rush. This makes investors expect that the market may not be able to reverse an uptrend anytime soon.
Bitcoin is currently trading at $20,178.81, climbing from the $21,500 range, down more than -5.7% over the past 24 hours. And there is no sign that it will increase during this period.informationfrom CoinGecko