After Federal Reserve Chairman Jerome Powell emphasized that it would be very determined to fight inflation, crypto money prices remained relaxed and managed to rise a little. bitcoin The price was currently trading around $20,900 and continued to depreciate until the previous trading day.
If the downward movement in Bitcoin price continues, it seems very likely that the critical support at $ 20,000 will be broken. Questions and discussions continue about whether new liquidations will occur after this support is broken.
Bitcoin Price Very Close to $20,000 Level
Cryptocurrency markets have been showing a very strong correlation with the ‘stock market’ for the last few months. While the discussions about whether this correlation was broken or not, it could be seen that the correlation continued on the price chart.
“As the bear market continues in cryptocurrencies, the ratio of large wallets holding Tether continues to decrease. Addresses holding between $100,000 and $10 million in USDT have shed -50.5% of their holdings since they peaked supply 18 months ago. – Centiment.”
biggest altcoin Ethereum on the other hand, it is testing the $1050 levels, which it last visited a year ago. ETH, which continued to lose price during this test, also triggered the decline in other altcoins.
As long as the fear in the markets persists, people will prefer to hold on to ‘cash’. That was the case for firms struggling with liquidations at the height of the 2008 financial crisis and firms caught in the crossfire of the cryptocurrency meltdown this summer.
based in Singapore Three Arrows Capital now it’s in everyone’s focus. The crypto hedge fund is also known as one of the most productive investors in the industry and does not hesitate to make a breakthrough in this regard. While the company is also known to take on large crypto-asset debt, it appears to be facing $400 million liquidation in positions.
According to Messari’s fund profile experts, the company has lost 58% of its value this year, and this situation brings with it big problems and questions. On-chain data shows that the fund is trying to pay off its debt by liquidating its stock Ethereum.
The overall cryptocurrency market cap is $896 trillion, with Bitcoin dominance at 44%.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.