The latest crash in the cryptocurrency space has led to a reduction of almost $2 trillion in market capitalization and pushed three of the biggest crypto lending firms, Three Arrows Capital, Voyager Digital, and Celsius Network, into bankruptcy. Needless to say, the situation has been brutal.
Recently, the crypto bulls managed to gain a firm grip over the market after two months of bearish destruction. However, they could not manage to hold on for long, and the market is now bleeding yet again.
The broader cryptocurrency market has now plunged below $1 trillion market capitalization. During the early hours today, the world’s first cryptocurrency, Bitcoin, dropped to its weekly low. It crashed before moving above the 200 weekly moving average and is not finding a way to convert the resistance barrier into a support barrier.
At the moment, Bitcoin is trading at $21,172, with a pullback of 3.40% over the last 24hrs.
This has raised speculation among many traders and investors that the flagship currency might soon see its price action decline below the $20,000 mark.
Bitcoin Price To Drop Ahead Of FOMC Meeting?
This week is crucial for Bitcoin and the overall crypto market with the Federal Reserve’s scheduled interest rate hikes and GDP report.
According to reports, the Federal Reserve will likely increase the rate by 0.75% in the upcoming FOMC meeting.
Meanwhile, the crypto industry is under tight scrutiny from the SEC as the agency’s measures have increased with increasing market crashes and bankruptcy filings.
Along with the ongoing Ripple vs. SEC dispute, the SEC is also investigating Coinbase for allegations that the crypto exchange has listed security tokens, as well as insider trading charges.
These extreme conditions have posed a threat to the global crypto market as it is expected to see increased volatility.
One of the well-known crypto traders and analysts, Rekt Capital, claims that the market is set to face the wrath of the bears as Bitcoin and Ethereum, among many other altcoins, will drop soon.