The leading cryptocurrency has slipped below $19K for the first time in more than 60 days. For a variety of factors, investors' perceptions of Bitcoin appear to be declining. As always, the depreciation of the asset is directly related to the
American stock market performance. Stocks were lower today after a tumultuous trading session, in part because of concerns that the Federal Reserve will keep raising interest rates.
A total of $364.74 million worth of traders were liquidated throughout the course of the day, which saw 103,741 liquidations. The greatest single liquidation order, worth $2.57 million in BTC-USDT-SWAP, occurred on Okex.
Bitcoin is about to test this year's lows in the wake of a cryptocurrency sell-off that once again reduced the market value of the entire industry to less than $1 trillion.
The largest digital coin, which has lost more than 6% of its value this week, was trading at roughly $18.5K in the early hours of Wednesday. According to Coinmarketcap, the market capitalization of cryptocurrencies has declined by a corresponding amount during the past day.
Bitcoin has already lost more than 60% of its value for the year, according to data from the FTX exchange. Due to industry bankruptcy and a deteriorating macroeconomic environment, other crypto assets are being sold off, which is hurting this currency.
Prices for digital assets have fallen further since June as a result of the collapse of the Terra stablecoin ecosystem, the insolvency of Voyager Digital and Celsius Network, the bankruptcy of Three Arrows Capital, and the failure of Terra.
A number of risky assets, including cryptocurrencies, are under pressure as a result of real interest rates, which are considered to be the true cost of borrowing. A low point of about $17.6K, reached in June as a result of explosions at cryptocurrency lenders and hedge funds, is getting closer with the current decline in the price of Bitcoin.
Until the US Federal Reserve's deadline is reached, the war against inflation may not be won.
The Fed's decision-makers have been bullish on the stock market for the most of this year, warning traders ahead of time (under the name "forward guidance") of anticipated changes in monetary policy. That, however, seems to be already in the past. Central banks will no longer employ forward guidance, according to Fed Chair Jerome Powell's announcement in July.
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