Against this backdrop, crypto-currency investors have their backs against the wall. Many of them have decided to liquidate their positions, others have tried to stay in the market without much success, but with the possibility of a quick recovery.
As for the chances of recovery, in recent weeks, the price of some crypto-currencies, including bitcoin, had begun to rebound. As the price of the major crypto-currencies began to rise, the value of the overall market recovered, but it seems to be only a momentary upturn.
According to the latest data, crypto-currency prices have suddenly, and sharply, fallen in recent hours. Market analysts say that this is nothing more than an explosion of selling pressure in the market, making the leading crypto-currency one of the main ones affected.
The price of bitcoin has hit a new low from where it was three weeks ago. Currently, the price of the market’s leading crypto-currency is hovering around $21,000.
In fact, at the time of this publication, the price of bitcoin is 21,292 dollars. A rather lower value than that recorded during the morning of this edition, which may mean that the selling cycle is not over and that the outlook, at least for now, is not the most encouraging.
The market is in danger
Over the course of this year, the danger to the value of some cryptocurrencies has become more real than ever. During this time, the drop recorded by some digital assets has been truly abysmal, putting investors and the market in check. Just when it looked like bitcoin might start to climb back up, everything went backwards.
The price of bitcoin dropped 7.7%, what’s curious, and also worrisome, is that this drop occurred in just a few minutes during the morning. Today, the loss suffered by bitcoin is 9.03%, and this is only the data from the last 24 hours, so it is possible that its price will continue to fall.
Why is bitcoin falling?
As is recurrent, the reason for the fall in the price of a crypto-currency like bitcoin is not clear. Whether a crypto-currency rises or falls depends on a number of factors, and according to Susannah Streeter, a market analyst at Hargreaves Lansdown, a British firm, there is no identifiable pattern at the moment.
For Streeter, at this point, it has not been possible to determine what the pattern is that caused the sudden collapse of this crypto-currency to occur. What makes the difference at this point is that after the fall, there is no solid rebound, but the fall continues and in the next few hours, the situation could get worse.
What the analyst said is that one of the most important factors for the fall is probably a massive sell-off. While it’s not the only reason, it seems to be one of the most consistent. And it didn’t just affect bitcoin, as Cardano fell before, followed by Ethereum.
Without a doubt, what is happening in the market right now is the result and consequence of what happened in May with Terra. This situation led to a wave of liquidations, bankruptcies, layoffs and great desperation in the market. Since then, the major cryptocurrencies have fallen considerably, and the aftermath is still ongoing.
It’s worth noting that bitcoin hasn’t hit an excessively dangerous low yet, and although it recovered the previous low of $17,599 on June 18, the outlook isn’t entirely encouraging, as the crypto-currency is still accumulating 54% falls that could increase.