MAJOR REASONS WHY BITCOIN AND THE CRYPTO MARKET ARE STRUGGLING
Top 5 cryptocurrencies to watch in November
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Bitcoin dropped below $20K on Thursday morning trade for the fourth time in as many weeks, extending the crypto bear market into the final days of June.
According to FTX exchange, the price of bitcoin dropped to $19,984 on Thursday morning before rising again to above $20K less than 20 minutes later. Over 42% of the total crypto market is made up of bitcoin.
At least thrice this month, on Tuesday, and this morning, and more dramatically two weeks ago when the most popular cryptocurrency crossed the closely-watched threshold after lurching below $25K for five days.
The flagship crypto had never before gone below the high of the previous bull run, which was $19,783.21 on December 17, in previous bear markets. On June 17, a barrier was broken.
What you should know
In the midst of the most recent anxiety-inducing industry news, which included a report of an order by a British Virgin Islands court for the liquidation of a cryptocurrency hedge fund, Three Arrows Capital, the largest crypto by market capitalization experienced a small percentage point loss for the day. Bitcoin has decreased for four days in a row and briefly fell below $20,000 earlier on Thursday morning before recovering.
The U.S Fed’s chief Wednesday’s remarks on taming high inflation also didn’t provide much solace for cryptocurrency investors who are already struggling with the ongoing Three Arrows fiasco.
The company has experienced significant losses as a result of the recent abrupt collapse and may become insolvent after spending at least $400 million on liquidations.
Investors are also uneasy following Grayscale Investments’ lawsuit against the U.S. Securities and Exchange Commission (SEC), which was filed only an hour after the regulatory body denied the company’s request to turn its flagship Grayscale Bitcoin Trust product into an exchange-traded fund (ETF).
Ethereum’s price, which was $1,960 at the beginning of the month, dropped to $897 on June 18 but has since held over $1,000 for the past 10 days.
The overall market value of the Crypto market stood at $893 billion down more than $2 trillion from its November peak.
©️Olumide Adesina by Olumide Adesina June 30, 2022