Bitcoin tumbles to 18-month low as persistent inflation terrorizes markets – Cryptocurrency News



The world’s largest cryptocurrency by market capitalization, Bitcoin, has been experiencing a vast sell-off since the beginning of the week, losing more than 25% before recovering some lost ground. Moreover, the broader crypto space has been following Bitcoin’s path amid increasing concerns over slowing global growth and a potential recession as major central banks tilt towards more aggressive tightening to combat rising inflation. In the last couple of days, two crypto trading platforms temporarily halted withdrawals and transfers, exacerbating the downfall and reminding investors that systemic risks in the crypto ecosystem are lingering.

Inflation remains the name of the game

Since the beginning of 2022, cryptocurrencies have been moving in tandem with equity markets, exhibiting a higher positive correlation with tech stocks. During that period, risky assets have been facing continuous downside pressures as investors appear to be moving towards defensive assets in the face of persistently high inflation and recession fears. The latest blow to risky assets was dealt on Friday by the May US CPI print, which came out hotter than expected at 8.6% year-on-year, debunking the peak inflation narrative.

Following that news, investors  increased their bets over an upcoming 75 basis points rate hike at the July meeting, inflicting devastating damage in equity and crypto markets. More precisely, the tremendous selling interest caused the cryptocurrency market’s capitalization to plunge below $1 trillion for the first time since January 2021.

Unregulated nature poses an additional threat

As turbulence rippled through the crypto space in the past few days, leading cryptocurrency exchanges were forced to temporarily pause some of their features amid increasing market volatility. On Monday, Celsius, a popular crypto lending platform, announced that it had halted all crypto and money withdrawals, alongside swaps and transfers between different accounts, which lead to its own token CEL losing more than 50% on the news. Furthermore, another famous crypto exchange, Binance, ceased Bitcoin withdrawals for more than 30 minutes, attributing this move to technical issues, with rumors suggesting that this action was taken due to the ongoing crypto bloodbath.

In addition, crypto exchange companies have been increasingly stating that they plan to proceed with layoffs to curtail their operating costs. Specifically, last week, both BlockFi and Crypto.com reported that they would cut 20% and 5% of their staff respectively as the dramatic shift in macroeconomic conditions has been largely weighing on the broader tech sector. The aforementioned developments paint a gloomy picture for the outlook of the crypto space, which combined with the regulatory woes and the recent Terra collapse have significantly deteriorated investors’ sentiment towards cryptocurrencies.

Bitcoin collapses to fresh 18-month low

The recent sell-off in crypto markets caused Bitcoin's price to fall to a fresh 2022 low, which is also an 18-month low, before bouncing back slightly.

Should negative momentum strengthen and the price dives beneath the recent low of $20,794, the November 2020 support region of $16,200 could act as the first line of defense.  Further downside moves could then stall at the August 2020 resistance of $12,500.

To the upside, bullish actions could propel the price towards the $28,737 level, which is the 61.8% Fibonacci retracement of the 3,850-68,999 upleg. Higher, the 50% Fibo of $36,425 may prove a tough obstacle for the bulls to overcome.

면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.

온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.

이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.

우리는 웹사이트에서 최고의 경험을 전해드리기 위해 쿠키를 사용하고 있습니다. 자세히 읽거나 쿠키 설정을 변경하세요.

리스크 경고: 고객님의 자본이 위험에 노출 될 수 있습니다. 레버리지 상품은 모든 분들에게 적합하지 않을수 있습니다. 당사의 리스크 공시를 참고하시기 바랍니다.