At around 2:50 pm today (18), Bitcoin (BTC) fell by more than 6% within 10 minutes, officially falling below the $20,000 mark, which is the first time since December 2020 that it has fallen below this level; After 4 p.m., it fell below 19,000 to 18,743 US dollars, the deepest drop in a single day was over 8.7%, and it also officially fell below the historical high of the 2017 bull market.
BTC falls below 2017 bull market high
Notably, this is the first time in Bitcoin’s history that it has fallen below the all-time high (ATH) of the previous halving cycle, the $19,800 peak set by the 2017 bull run.
Ether (ETH) also started a decline after 1 p.m. today, with a blood loss of more than 10% to a low of $975 within 4 hours, falling below the $1,000 mark for the first time since January 2021.
According to CoinMarketCap data, the market value of the overall cryptocurrency market also fell below US$900 billion today, and BNB, ADA, SOL, XRP, and DOGE among the top 10 tokens by market value all experienced a drop of 5-8% in the past 24 hours.
Where is the bear market bottom?
According to a report by Cointelegraph, analysts said that historical trends indicate that 80-84% is the classic retracement target of bear markets, so it is expected that the potential bottom of this round of BTC bear market will extend to $14,000 or even $11,000. $14,000 corresponds to the 80% retracement of the current all-time high and $11,000 corresponds to the 84% retracement of $69,000.
CNBC’s “MadMoney” host Jim Cramer predicted bitcoin will fall below $12,000 on “Squawk Box” yesterday.
Fed: Seeing Structural Vulnerability in Crypto Markets
Separately, the U.S. Federal Reserve (Fed) noted in its monetary policy report on Friday: The plummeting value of certain stablecoins [or TerraUSD (UST)] de-pegged from the U.S. dollar in May, and recent pressures in digital asset markets suggest that Structural vulnerabilities exist. Therefore, legislation is urgently needed to address financial risks. Stablecoins that are not backed by safe and sufficiently liquid assets and are not subject to appropriate regulatory standards create risks for investors and potentially the financial system. The risks of stablecoin reserve assets and the lack of transparency in liquidity could exacerbate these vulnerabilities.
At this time, many investors also turned their attention to the mining machine market, and gradually increased their positions and entered the market by investing in mining machines.
Post time: Aug-08-2022