Bitcoin Rolls Back to $16,000 as Crypto Market Loses 6%

[ad_1]

Over the past 24 hours, Bitcoin has slipped below the important $17,000 support level as the weekly bears have taken the driver’s seat. The most popular cryptocurrency is currently selling at $16,723, down 2.5% over the past week.

There has been significant selling pressure in the cryptocurrency market as a whole, resulting in a 6% correction and $50 billion loss in the past 24 hours. Following the latest price decline, BTC gave up all weekly gains and moved back into the red zone.

Data from TradingView and Cointelegraph Markets Pro tracked BTC/USD as it hit multi-day lows on Bitstamp at $16,928. The pair reversed its entire advance to one-month highs in response to the most recent macro data and the US Federal Reserve’s decision to raise interest rates.

Similarly, Ethereum’s price has fallen over 7% in the past 24 hours, according to figures from CoinGecko. The second-largest cryptocurrency has slowed over the past week, trading below $1,178.

Bitcoin and Ethereum accounted for the vast majority of the $117 million in leveraged positions that were wiped out across the entire cryptocurrency market.

Image: Cryptopolitan Binance FUD scares away investors

Events surrounding Binance have baffled crypto investors, who have been warned against overreacting to “FUD” regarding the exchange and others. Mazars Group, Binance’s proof-of-reserves auditor, severed ties with the exchange on Friday.

Additionally, the current decline in the crypto market mirrors the severe downturn on Wall Street. Friday marked another 1% decline for the Dow Jones. This drop in prices is the result of vigorous monetary tightening by the central bank.

Bitcoin appeared to end the year on a positive note at one point after reacting positively to US inflation and consumer price index (CPI) statistics as well as subsequent Fed policy decisions. interest rate.

The CPI measures the rate of change in the prices of a range of goods. The rate rose 0.1% in November, which is slower than the inflation rate in October. At that time, the CPI report suggested a price increase of 0.3%.

Total Crypto Market Cap At $764 Billion | Chart: TradingView.com Bitcoin Bulls Still Holds an Edge

On Wednesday, the US Bureau of Labor Statistics reported that, by its standards, inflation continued to rise, albeit at a slower pace from the previous month. This indicates that the Federal Reserve’s hawkish efforts to rein in inflation have so far been successful.

Jim Wycoff, an analyst at Kitco News, said that despite the continued decline, Bitcoin bulls have managed to maintain a short-term technical edge despite the alpha coin’s failure to sustain its recent gains.

“Bitcoin US dollar prices are down at the start of US trading on Friday, due to a typical negative weekend adjustment after hitting a five-week high on Wednesday,” Wycoff said.

Prices, he continued, remain in an “uptrend on the daily chart, and the Bulls maintain a modest overall near-term technical advantage.”

Bitcoin’s economic and market fundamentals continue to be strong, despite the price of BTC seeing one dramatic drop after another, with each move newsworthy to major industry players.

[ad_2]