Bitcoin Price Cracks Below $23,000, Drags Other Major Cryptos With It

Christian Encila

2 years ago

3 mins read

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The crypto market is experiencing a jolt in terms of prices as Bitcoin and other cryptocurrencies plummet. CoinMarketCap shows that Bitcoin price has retreated below the $23,000 level, losing nearly 4% of its value in the last 24 hours, at the time of writing. This may have been caused by recently released macroeconomic data that shows a slowing economy.

Source: CoinMarketCap

Just this Thursday, February 23, quarter on quarter GDP growth has decreased from 3.2% to 2.7%. This is preceded by a looming house market crisis, putting pressure on investor sentiment. Equities showed little enthusiasm about the economic situation of the United States, with major indices like the Dow Jones and S&P 500 dropping a few percentages.

With equities being highly correlated with crypto, Bitcoin price, along with the entire market, might face more pain in the long term.

A Wave Of Challenges For Investors

At Bitcoin’s current price of $22,981, the downward price movement of the king crypto has pulled the altcoin market with it. According to DeFiLlama, the total value locked in the space decreased by 2% since yesterday from $49 billion to $48 billion.

Other major cryptocurrencies like Ethereum also plummeted, with the prized altcoin nearly following Bitcoin’s price drop in the weekly timeframe. This of course led to other top altcoins to experience a sudden price drop. Litecoin, a known favorite of crypto investors, experienced an 8% increase in the weekly time frame.

Source: DeFiLlama

The consequences for the recent price freefall is signigicant. CoinGlass notes that short sellers outnumber long buyers, which is then backed by a $143 million liquidation of long positions just today, February 25.

As Bitcoin Price Settles Below $23K, BTC Bulls Chart Their Next Move

The coin’s current price offers little rest for investors as the rejection at $25,000 strengthens the bears in the short to medium term. However, the bulls can find support at $22, a crucial launch pad for a near-future upward movement.

Crypto total market cap at $1 trillion on the weekend chart | Chart: TradingView.com

For now, investors and traders should focus on the coin’s support at $22k. If this support is broken, it can trigger a bigger sell-off that could put Bitcoin back at $21k.

Macroeconomic developments would also play a big role in the potential pull back in the long term. BTC bulls should also monitor major stock indices like the S&P 500 as Bitcoin price follows the equity market in price movement.

Investors should also watch investor sentiment which can be seen in the number of long or short positions in the coin. As Bitcoin price continues its downward motion, investors should brace for impact in the coming days.

-Featured image from ArborCare

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.