The cryptocurrency market has been experiencing a bearish trend over the past few days, with Bitcoin (BTC) falling below $17,000 after a short-lived bull run. BTC has fallen below 17,000 while Ethereum and other altcoins have also taken a hit.
At the same time, Stablecoins have continued to grow in popularity and are now a significant source of liquidity for the cryptocurrency market. In the past week, total market capitalization has declined by over 15% and is currently around $8.7 billion. On the other hand, stablecoins have remained relatively stable and have seen a steady increase in usage.
One of the main problems the market is now experiencing is FTX’s blow. A number of additional exchanges and crypto lending companies connected to the FTX platform continued to file for bankruptcy as a result of the collapse of one of the biggest cryptocurrency exchanges in the world. Significant cryptocurrencies like BTC and ETH also experienced sharp drops in value. Investors were also alarmed by the revelation that the FTX Exploiter was converting substantial sums of Ethereum into Bitcoin.
Fall of BTC and ETH impact on the crypto market
While having advantages from being the two biggest cryptocurrencies on the market, they also have a big impact on the overall market sentiment. In essence, the shocks caused by market hiccups are absorbed by Bitcoin and Ethereum. Bitcoin’s price swings served as proof earlier, when investors speculated on the causes of the cryptocurrency market meltdown.
The price of Bitcoin is currently fluctuating about $16,727.67 at the moment of writing, and the price of Ethereum is around $1,179.64. This shows that the two cryptocurrencies, which reached their respective all-time highs of $69k and $4k in 2021, have lost between 65% and 70% of their value as of 2022.
The technical analysis shows a declining trend in the price of Bitcoin since its all-time high, and that trend is likely to continue until a bullish momentum takes over. On the other hand, Ethereum has seen some recovery in the past few days, with its price reaching a high of $1,278.92 on December 13. However, it still remains to be seen whether this is just a temporary rally or the start of a longer-term trend.
Additionally, other altcoins are in bloodshed. Altcoins such as Ripple, Cardano, and Litecoin have all seen a significant decline in their prices. However, some altcoins such as Toncoin and the stablecoins have registered an upsurge in prices as they are seen as safe havens in this volatile market.
Overall, the crypto market has been very volatile in the last few hours, with significant drops and surges in the prices of various cryptocurrencies. The news of the FTX Exploiter’s activities has also had a significant impact on market sentiment. Looking ahead, BTC’s and ETH’s prices will continue to influence the overall crypto market, and the next support levels for the two cryptocurrencies will closely trigger any possible bullish momentum.
