Bitcoin and cryptocurrency prices have fallen sharply over the last 24 hours, with the bitcoin price crashing under $60,000 per bitcoin.
Other major cryptocurrencies, including ethereum, Binance’s BNB, solana, cardano and Ripple’s XRP, have also fallen back—all losing between 7% and 10% of their value.
The sudden crypto price crash has wiped around $400 billion from the combined crypto market, which last week touched a record high of around $3 trillion.
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“Cryptocurrencies have experienced a sell-off, taking major cryptos below recent short-term support lines,” Alex Kuptsikevch, senior financial analyst at FxPro, said in emailed comments.
“A stronger dollar against major currencies and a desire to lock in profits triggered a strong but relatively even sell-off overnight. The cryptocurrency market capitalization collapsed 7.5% over the past 24 hours to $2.66 trillion, breaking a long consolidation.”
The sudden crypto price move lower comes after bitcoin saw its first major upgrade in four years over the weekend. The bitcoin price had climbed in the run-up to the long-awaited upgrade and had come within touching distance of $70,000 per bitcoin last week for the first time.
“Yet again, bitcoin has done what it does best—defy expectations,” Mikkel Morch, executive director at crypto hedge fund ARK36, said in emailed comments. “After hitting an all-time high near the $69,000 level last week, the overall investor expectation was that the trend would immediately continue.”
Ethereum, the second-largest cryptocurrency after bitcoin, had also hit an all-time high of almost $5,000 per ether last week. The ethereum price has now dropped back to around $4,100.
“As long as ethereum stays above $3900, it’s just a healthy retest,” Simon Dedic, managing partner at London-based investment company Moonrock Capital, said via Twitter.
Bitcoin, ethereum and most other major cryptocurrencies have soared this year, with many making triple-digit percent increases. The bitcoin price has doubled since the beginning of 2021 while the ethereum price has added over 400%.
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However, the latest crypto price rout has so far failed to put off some investors who remain confident bitcoin, ethereum and other cryptocurrencies are going to rally into the end of the year.
“At the moment, the overall bullish market structure remains largely intact,” added Morch.
“The cryptocurrency fear and greed index has so far failed to react to yesterday’s spill in the sector, ending up at 71, still in greed territory, which bears little resemblance to the sentiment in the markets as of this morning,” said Kuptsikevch, warning traders should watch out for “a break or a short-term shakeout.”
“The $57,500-$60,000 area focuses on the 50-day moving average and the 61.8% retracement level from the rise since late September. If bitcoin does not get solid buying support in this area, it could open the road down to $52,000.”