Crypto Markets Lose $100 Billion As Bitcoin Drops Below $26K – More Pain Ahead?

Christian Encila

1 year ago

2 mins read

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The broader crypto markets have been particularly shaken up in the previous 24 hours, with Bitcoin falling below the $26,000 threshold once more. Bitcoin is currently selling at $25,168.94, down 16% in the last week, according to statistics from Coingecko published on Monday.

As Bitcoin fell to its lowest level since late 2020, the entire cryptocurrency market is feeling the squeeze of recession fears, which could deter investors from placing riskier wagers.

However, alternative coins are affected far as severely. Ethereum, for instance, has fallen below $1,500, down 70 percent from its all-time high of over $4,900 in November 2021. In the past 24 hours, Dogecoin, TRON, and Avalanche all witnessed double-digit losses.

The overall market capitalization of cryptocurrencies has been trading in a declining channel for the past month and is currently supported at $1.17 trillion.

The crypto market has become increasingly tied to traditional equity markets in recent months (CNBC).

$100-B Wiped Out From Crypto Market

The cryptocurrency market lost more than $100 billion over the weekend after United States Treasury Secretary Janet Yellen offered a gloomy crypto warning.

The market valuation of Bitcoin has decreased to $520 billion. The silver lining for BTC bulls is that their control over alternative cryptocurrencies has increased to about 48 percent.

After a few brief and fruitless bids to surpass $32,000 in the last seven days, the world’s largest cryptocurrency began to progressively lose value. Bitcoin’s last rejection at this level sent its price down to $30,000, where it remained for several days.

BTC total market cap at $498 billion on the weekend chart | Source: TradingView.com

Rich Blake of the cryptocurrency startup Uphold says:

“Crypto appears to be losing the ideal opportunity to illustrate its forgotten function as a hedge against inflation.”

Inflation Jitters And Bitcoin’s Volatility

Inflation estimates for the United States, 8.6 percent, were announced late Friday. The four-decade record increased Bitcoin’s volatility, resulting in today’s plunge to the $25,000 mark.

In recent months, the crypto market has become increasingly connected with traditional equity markets. The Nasdaq, which focuses on technology, was down 3.5%, while the S&P 500 and Dow Jones Industrial Average were down more than 2.5%.

Suggested Reading | Dogecoin Mining Revenue Massively Fell In Past 12 Months

Next week’s two-day meeting of the US Federal Reserve is anticipated to result in a further increase in interest rates. This week, Yellen also cautioned against putting cryptocurrency in 401(k) plans, adding to the gloomy sentiment.

Last week, the central banks of Australia and Canada, where inflation has also intensified, raised their rates by approximately 50 basis points, while the European Central Bank announced it would cease asset purchases and begin rate hikes later this summer.

Featured image from Reynolds and Reynolds, chart from TradingView.com

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.