- Bitcoin, Ethereum and altcoin prices have tumbled in a crypto market bloodbath.
- Bank of England has flagged the risk of 10% inflation, fueling a bearish sentiment among investors.
- Bitcoin witnessed the largest drop in price since April 2022 as investors pulled capital out of the crypto market.
Bitcoin price has dropped and this has triggered $191 million in futures losses across exchanges. Rampant fear of inflation has pushed Bitcoin and altcoin prices down, hinting at a continuation of the bear market.
Bitcoin, Ethereum and altcoins continue bleeding with mass liquidation
Crypto-tracked futures were hit by mass liquidation, wiping out $400 million in long positions. The massive losses were incurred as BTC hit a low of $35,700, and Ethereum as well as other altcoins took a steep nosedive. Based on data from Coinglass, BTC futures alone were responsible for $191 million in liquidations.
The Bank of England increased the base rate from 0.75% to 1% at its meeting on Thursday. Proponents believe the BoE’s warning of 10% inflation and recession, alongside the US Federal Reserve’s increased benchmark interest rate, are the key drivers of the bloodbath.
In response to the tightening monetary policy of the Federal Reserve and the double-whammy of recession and inflation by the BoE, stock market indices have tumbled. The S&P 500 lost 3.4% as 95% of the companies in the benchmark were in the red. Investors have started pulling capital out of Bitcoin and other risky-based asset classes.
Vijay Ayyar, Vice President of corporate development at Luno, said:
Overall, global markets have been spooked by growth fears as we can see. The Dow had its worst drop since 2020, and all related risky-based assets followed suit including crypto.
Proponents believe Bitcoin has lost “a key level” when it dropped below $37,500, and it is expected to continue its downward spiral over the next few days. Ayyar believes Bitcoin could test a low of $30,000 soon, and if the price continues to plummet, the asset could hit $25,000.
@Phoenix_Ash3es, leading on-chain analyst and trader, is bearish on Bitcoin. The analyst argues if Bitcoin fails to close the week above $38,472, there are six consecutive negative weekly candles in a row. A downward spiral like that would be a first in Bitcoin price history.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.