Its all dull and gloom for the crypto investors as the market has turned highly jittery. For yet another day, bears have taken control of the crypto street. Bitcoin-the largest crypto has sank to levels below $20K to last trade at $19,250, down close to 8%. On an intra-day basis it fell to a low of $18,739.5, while the second largest token Ether also collapsed to below $1K levels and last traded with a cut of over 8%.
Other altcoins too are having a bad session with top cryptos as compiled by Coindesk all painted in red, with losses up to 9% as for Chainlink. This is barring the Stablecoins Tether and USD Coin.
As per Coinmarketcap, global crypto market capitalisation has come down to $845.26 billion, down over 6% from the previous day.
Why the current crisis in cryptocurrencies?
The sell-off in the space has heightened due to the hedge fund Three Arrow that had its collateral liquidated by crypto lender BlockFi.
What does bitcoin's price below $20000 K suggesst?
Technically the bull rally in cryptos has fizzled out with bitcoin moving below the key technical support price. This price move is symbolic for the sector as a whole. The prices are even below the 2017 highs, the previous major bitcoin bull run.