Bitcoin Falls To $26K As Crypto Sell-Off Continues – Does The Slide Approach $25K?


Bitcoin has been losing value over several months due to the limited liquidity situation and targeted dumping of high beta tech stocks, among other market variables.

Since the 2008 global financial crisis, low interest rates have led to a wide range of market values ​​reaching unusual levels. Now, according to analysts, the 10-year bubble has burst and assets are returning to reality.

Bitcoin fell to its 16-month low on Thursday, triggering an escape from risky assets like tech stocks, and the collapse of the so-called stablecoin TerraUSD underscored pressure on the cryptocurrency market.

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Ether, the world’s second-largest cryptocurrency, lost more than 10% of its value on Thursday, reaching $1,833 for the first time since July of last year.

Bitcoin (BTC) fell below the $27,000 threshold as the ongoing cryptocurrency market sell-off continued. In November 2012, it hit an all-time high of $69,000.

Bitcoin retreated to its lowest level in 16 months on Thursday (Fast Company).

Bitcoin Fall… degradation

The world’s largest cryptocurrency price hit $26,970, the lowest since December 28, 2020. BTC has lost a third of its value, $13,000, over the last 8 sessions.

Bitcoin price has fallen 7% in the last 24 hours and is currently trading at the lower end of its 12-month price range. Similar to January 24 of this year and May 20 of last year, the daily Relative Strength Index (RSI) is excessively oversold.

Nevertheless, in the event of a decline, an oversold situation can persist for several weeks before the price recovers. The current relief rally could be short-lived, especially given that it fell sharply below $35,000 last week.

Investors are terrified

After the Bureau of Labor Statistics reported that consumer prices rose 8.4% in April, that’s slightly higher than economists surveyed by Dow Jones expected. Cryptocurrencies plummeted along with stocks.

This stock market terrifies investors to liquidate risky assets like cryptocurrencies. The correlation between cryptocurrencies and the S&P 500 and, more recently, the tech-focused Nasdaq Composite Index remains significant.

AscendEx investor Michael Rinko said the cryptocurrency industry has been under pressure for some time.

“The Fed continues to raise interest rates. This means that stocks continue to fall and cryptocurrencies continue to fall. In the general market, this has created a lot of anxiety,” said Rinko.

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BTC total market cap at $501 billion on the daily chart | Source: TradingView.com

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Coinbase stock collapses attracted to BTC

Meanwhile, the Bitcoin carnage has a huge impact on Coinbase.

The cryptocurrency brokerage fell short of Wall Street expectations with a loss in the first quarter and revenue down 28% year-over-year. On Wednesday, Coinbase shares fell more than a quarter to an all-time low.

In the past week alone, the company’s stock has lost more than 50% of its value. The company’s stock is now down more than 75% since the beginning of the year and is trading at more than 85% below its all-time high in November.

Featured image from DataDrivenInvestor, chart from TradingView.com

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