The overall cryptocurrency market, which is currently flirting with $1 trillion in market value, is under downward pressure because of heightened regulatory enforcement from the United States Securities and Exchange Commission. Bitcoin and numerous altcoins are all in the red.
In the past 24 hours, 59,032 traders betting on the bullish run got liquidated, the total liquidations come in at $185.04 million The largest single liquidation order happened on Bitmex – XBTUSD value $2.53 million
Recent price action shows, the biggest digital asset by market value was selling for around $23.7K, down by more than 4% from the previous day at the time of drafting this report and much below its high of over $25,100 that it hit earlier in the day.
It was the first time since August that Bitcoin had crossed the $25,000 barrier, a sign of growing economic and inflationary optimism.
US Federal Reserve Bank’s monetary policy not yet successful
But both appeared to disappear within a short period of time as January’s Producer Price Index (PPI) unexpectedly increased by 0.7% month over month, suggesting that the U.S. central bank’s monetary policy had not yet been successful in containing price increases that have plagued the economy for more than a year.
The Securities and Exchange Commission filed a lawsuit against TerraUSD in the most recent US regulatory action. A stablecoin called TerraUSD went bankrupt last year, sparking an industry-wide crisis and a slew of high-profile bankruptcies.
Like Bitcoin’s earlier rise, Ether advanced well above $1,700 for two days in a row before declining. The leading altcoin was trading at around $1,650, down more than a percentage point.
APT, the token of layer 1 protocol Aptos, recently fell 8% after surging more than 9% earlier in the day.
Consequently, two of the Federal Reserve’s most hawkish policymakers have hinted that they may eventually support going back to larger interest rate increases., such remarks reduced risk-taking on international markets and increased outflows in the crypto market.
Bitcoin like to drop to $20,000 level
Several experts anticipate that Bitcoin will drop to the $20,000 level in the mid-term as investors worry about the persistently positive jobs statistics and an extended period of hawkish U.S. monetary policy that would stifle economic development. Others, however, contend that the present slump will only last a short time before prices resume their upward path, following historical patterns as markets recovered from previous bear markets.