The broader cryptocurrency market has come under strong selling pressure, with a 6% correction in the last 24 hours and a loss of $50 billion. Bitcoin (BTC) is also down 4.5% and has slipped below its crucial USD 17,000 support. With BTC’s recent price drop, it has given up all weekly gains and is now in negative territory.
On the other hand, altcoins have shown even steeper declines as concerns grow that the digital market will suffer even more pain. The developments surrounding Binance have kept crypto investors on the edge of their seats. On Friday, December 16, Binance’s Proof-of-Reserves auditor, the Mazars Group, suspended ties with the exchange.
This has also led to negative investor sentiment. The recent decline in the crypto market also follows the sharp correction on Wall Street. Dow Jones (INDEXDJX: .DJI) ended another 1% negative on Friday. This fall in prices is due to the economy weathering aggressive tightening by the Federal Reserve.
Will Tamplin, senior analyst at Fairlead Strategies, believes Bitcoin is now at risk of falling back to its November low of $15,700.
Altcoins are seeing a bigger decline than Bitcoin
Altcoins have seen an even bigger decline compared to Bitcoin. The world’s second largest crypto Ethereum (ETH) is down more than 7.5% to break below the $1,200 level.
Many other top-ten altcoins are facing double-digit percentage losses. Altcoins such as Binance Coin (BNB), Dogecoin (DOGE), Polygon (MATIC), Cardano (ADA) and others are down by as much as 10-15%.
The collapse contagion has already spread to other crypto companies, with cryptocurrency lenders like Genesis running into trouble once again. Many experts believe that the contamination may spread further in the market in the future. Noelle Acheson, author of the newsletter “Crypto is Macro Now,” wrote, “We may have some nasty contagion news to come. But most of the investors who were planning to sell have done so.”
Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is constantly in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and sometimes explores his culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
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