Crypto

Cryptocurrency collapse: Bitcoin drops to its lowest level!

Against this background, cryptocurrency investors stand against the wall. Many of them decided to liquidate their positions, others tried to stay in the market without much success, but with the possibility of a quick recovery.

As for the chances of a recovery, in recent weeks the prices of some cryptocurrencies, including bitcoin, have begun to recover. With the rise in prices of major cryptocurrencies, the overall market value has recovered, but this seems to be only a short-term recovery.

According to the latest data, cryptocurrency prices have dropped suddenly and dramatically over the past few hours. Market analysts say it is nothing short of an explosion of selling pressure in the market that has made the mainstream cryptocurrency one of the biggest hits.

The price of bitcoin hit a new low compared to the value reached three weeks ago. Currently, the price of the first cryptocurrency on the market is hovering around $21,000.

In fact, at the time this article was published, the price of Bitcoin is $21,292. The reading is slightly lower than what was recorded on the morning of this release, which may mean that the sales cycle is not yet complete and that the outlook, at least for now, is not the most encouraging.

The market is in danger

During this year, the danger to the value of some cryptocurrencies has become more real than ever. During this period, the fall of some digital assets was truly monstrous, which put investors and the market under control. Just when it looked like bitcoin might start to rise, things went awry.

The price of bitcoin fell by 7.7%, which is curious and also worrisome that this fall was recorded in just a few minutes in the morning. Today, the loss of bitcoin is 9.03%, and this is only the data for the last day, so it is possible that its price will continue to decline.

Why is bitcoin falling?

As is often the case, the reason for the fall in the price of a cryptocurrency like bitcoin is unclear. Whether the cryptocurrency goes up or down depends on several factors, and according to Suzanne Streeter, a market analyst at Hargreaves Lansdown in the UK, there is no clear pattern at the moment.

For Streeter, it has not yet been able to determine what pattern caused the sudden collapse of this cryptocurrency. What matters at this point is that there is no strong rebound after the fall, but the fall continues and it could get worse over the next few hours.

The analyst said that probably one of the biggest determinants of the fall is the sell-off. Although this is not the only reason, it seems to be one of the most persistent. And it wasn’t just bitcoin that was affected, as Cardano fell first, and then Ethereum.

Undoubtedly, what is happening in the market today is the result and consequence of what happened in May with Terra. This situation has created a wave of liquidations, bankruptcies, layoffs and great despair in the market. Since then, major cryptocurrencies have plummeted and the effects are still ongoing.

It should be noted that bitcoin has yet to hit an overly dangerous low, and although it retraced the previous low of $17,599 on June 18, the outlook is not entirely encouraging as the cryptocurrency is still accumulating a 54% drop that could increase.

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