Bitcoin experiences losses for the 7th successive day, declining beneath $25K at some point early Monday. Continued selling momentum over the past week had the bellwether crypto losing 18% of its value to explore lows never seen since December 2020.
Meanwhile, the altcoin market suffered the most. Ethereum, the 2nd-largest crypto by capitalization, surrendered more than 28% within the past week. Moreover, alts in the top ten lost between 14% (TRX) and 32% (SOL).
Data from Coinmarketcap shows the global crypto market capitalization lost about 20% within a week, nearing the $ 1T level and breaching it sometime early today. Trading volume slumps accompanied the plunging prices, meaning investors quit the crypto space. Nevertheless, the traditional markets suffer from similar symptoms.
The crypto Fear and Greed Index plummeted to 11/100 by Monday. The index saw similar prolonged actions within the 10 – 20 range in December 2018 & March 2020. The latter market crypto winter end, whereas the latter depicted crashes final chord.
Nevertheless, it might be early to redeem downtrends for the token. Bitcoin doesn’t look to have ended the gestalt, as it’s yet to test the 200-week Moving Average as in the previously mentioned cases. The crypto remains primed for declines through $22K. Ambitious bears would likely try to push BTC to its 2017 peaks, beyond $19K.
Janet Yellen, U.S Treasury Secretary, called crypto risky for retirement investments. Also, Mike Novogratz of Galaxy Digital warned market players about prolonged market consolidation as the U.S Fed Reserve promises a tighter fiscal policy.
Cardano founder Charles Hoskinson trusts market players can find positivity amid current market downturns as bearish biases catalyze new opportunities within the crypto spectrum.
Meanwhile, Canada’s central bank announced citizens owning Bitcoin tripled to 13% last year. On the other hand, the Swedish Central Bank called for a suspension of PoW cryptos, including BTC, due to environmental effects.
Ukraine war, supply chain issues, monetary policy, and escalated inflation mean a highly foggy road for BTC’s future. These factors will likely see Bitcoin resorting to downtrends in the near term. Nevertheless, nothing is 100% in this space. We may have to wait for what upcoming trading sessions will bring.