Cryptocurrency Market News: $130 Billion Wiped From Crypto Markets In 24 Hours As Major Coins Continued Multi-Day Selloff

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Updated on 01/25/2022 – 00:12

Cryptocurrencies are moving in tandem with stocks, which have continued to decline since the start of this year and have just had their worst week since March 2020.

Investors are selling risky assets like tech stocks in anticipation of tighter monetary policy from the Federal Reserve. They also assess the impact of additional regulation on the crypto market as the Russian central bank plans to ban the mining and use of cryptocurrencies.

Bitcoin falls as Dow falls

On Monday, Bitcoin fell to $32,982.11, its lowest point since July, according to Coin Metrics, but rose 5.6% in afternoon trading to $37,183.25. Meanwhile, the Dow fell 1,115 points and the S&P 500 fell into correction territory for a brief moment.

Ether fell to $2,176.41, its lowest since July, according to Coin Metrics. It then rose 1.1% to $2,444.85. Both bitcoin and ether are nearly 50% off their all-time highs.

“It’s possible that macroeconomic concerns, such as the Fed’s response to inflation rates, have facilitated risk-reduction activity in general,” said Kraken head of OTC options trading Juthica Chou. “The recent price decline, coupled with high volatility, could lead to further selling as participants seek to reduce risk.”

Crypto Analysts Weigh in on Bitcoin

Some analysts say they see $30,000 as the next level of support for the cryptocurrency to test, but analyst John Roque of 22V Research thinks bitcoin could fall even further. Roque said he was using $30,000 as a target, but talked about the median historical bear market for bitcoin down 78%.

“A 78% decline from bitcoin’s high near $69,000 would imply a potential downside figure of around $15,000,” Roque said. “It’s probably safe to say that no bitcoin bulls have that number in their pattern. Of course, neither do we, but we think it’s worth keeping in our back pocket in case we need it. .”

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