Bitcoin struggles to hold above the $ 20,000 psychological threshold on Monday, amid a period of intense volatility that extended over the weekend.
The largest cryptocurrency in terms of capitalization fell earlier today up to 4.8%, to $ 19,914 at 09.32 in the morning (Greek time). Ether fell 7.8%, but remained above $ 1,000. Altcoins such as Solana, Cardano and Dogecoin are falling.
Bitcoin lost about 15% on Saturday, but later exceeded 20,000 again, with a similar jump on Sunday. The form of volatility indicates that the investment climate remains particularly fragile, as the Federal Reserve and other central banks have grabbed their “flames” in the field of interest rates, in order to tame unbridled inflation.
Interest rate hikes thus drain liquidity from the markets.
The T3 Bitcoin Volatility Index, which measures the level of changes in its price over a 30-day horizon, returned to its highs in mid-May, when the collapse of the stablecoin TerraUSD had shaken the markets.
“A toxic mix of bad news and higher interest rates has shaken the cryptocurrency market and we can expect big changes in the coming weeks,” Feroze Medora, APAC trading director at the Gemini cryptocurrency platform, told Bloomberg.
Bitcoin crashed below $ 20,000 last week for the first time since the end of 2020. Over the weekend, positions in the $ 879 million cryptocurrency were liquidated, according to Coinglass.
Source: Capital
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