Bitcoin’s price dropped to $34.5K, a level last seen when Russia invaded Ukraine. In addition, over $200 billion of the entire market’s capitalization was lost in the past few days, causing nothing but chaos for the industry.
The pioneer crypto is down nearly 10% in the last seven days and has fallen nearly 50% from last year’s high.
The Bitcoin retraced slightly after failing at $40K, but was heavily pressured by the rising U.S dollar after its situation changed for the worse due. Within just a few days, bitcoin fell by more than $4,000 to trade below its 10-week low of $35.5K.
What you should know
- Avalanche and Solana Terra fell over 10% this week, while Ethereum fell 5% over the week.
- The global macroeconomy is the primary culprit. World governments are grappling with inflation that hasn’t been seen in 40 years, and central banks are finally taking measures to fix the problem, like hiking interest rates and shrinking balance sheets.
- Despite signs of wide adoption, leading cryptocurrencies like Bitcoin and Ethereum have continued to fall, even as Gucci’s U.S. customers are being given the option to pay with Bitcoin in certain stores later this summer.
- Institutional investors have fled in droves following the failure of the crypto market to regain its former glory. Multiple sources indicate that institutional cash has been flowing out of the market in recent weeks.
- Over $339 million worth of money has been pulled from the market over the past month due to institutional investor withdrawals, according to Coinshares’ latest figures. Although a similar movement occurred at the beginning of the year, the study indicated that it had not been overturned.
- According to Coinshares, the total was $467 million at the start of the year, which indicates a $128 million difference.
Traders are unwilling to purchase at the critical market capitalization of $1.6 trillion as indicated by weak retail demand and the negative funding rate on altcoins. Further price corrections are likely to follow since buyers are waiting for further dips to buy.