Bitcoin and cryptocurrency prices have fallen sharply in the past 24 hours, with the price of Bitcoin dropping below $60,000 per bitcoin.
Other major cryptocurrencies also fell, including Ethereum, Binance’s BNB, Solana, Cardano and Ripple’s XRP – all losing between 7% and 10% of their value.
The sudden crash in cryptocurrency prices wiped out about $400 billion from the combined cryptocurrency market, which last week touched a record high of nearly $3 trillion.
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“Cryptocurrencies saw a sell-off, taking major cryptocurrencies below recent support lines in the short term,” Alex Kuptsikevch, chief financial analyst at FxPro, said in an email comment.
“The dollar’s rally against majors and profit taking led to a strong but relatively equal overnight sell-off. The cryptocurrency market cap has collapsed 7.5% in the past 24 hours to $2.66 trillion, breaking a long consolidation process.”
The sudden move down in the cryptocurrency’s price comes after bitcoin experienced its first major upgrade in four years over the weekend. The price of Bitcoin soared in the run-up to the long-awaited upgrade and was close to $70,000 per bitcoin last week for the first time.
“Bitcoin has once again done its best – defying expectations,” said Mikel Morch, CEO of crypto hedge fund ARK36, in comments via email. “After hitting an all-time high near $69,000 last week, the general investor’s expectation was that the trend would continue immediately.”
Ethereum, the second largest cryptocurrency after Bitcoin, also hit an all-time high of around $5,000 per ether last week. The price of Ethereum has now fallen to around $4,100.
Simon Didek, managing partner at London-based investment firm Monrock Capital, said via Twitter.
Bitcoin, Ethereum and most other major cryptocurrencies have soared this year, with many of them posting triple-digit increases. The price of Bitcoin has doubled since the beginning of 2021 while the price of Ethereum has added over 400%.
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However, the latest cryptocurrency price trajectory so far has failed to deter some investors who remain confident that Bitcoin, Ethereum and other cryptocurrencies will rise by the end of the year.
“For now, the overall structure of the bull market remains largely the same,” Morsch added.
“The cryptocurrency fear and greed index has so far failed to respond to yesterday’s leak in the sector, and ended up at 71, still in greedy territory, which is not very similar to the sentiment in the markets as of this morning,” Kuptsikevch warned. Traders should watch out for a ‘short-term breakout or jolt’.
“$57,500-$60K is focused on the 50-day moving average and the 61.8% retracement level of the rally since late September. If bitcoin does not get strong buying support in this area, it could open the way down to $52,000.”