• The market cap of the crypto market has dropped below $1 trillion, leading to over $300 million in liquidations.
• Bitcoin (BTC) has dropped to under $20,000 due to multiple negative news stories.
• Ethereum (ETH) suffered losses due to regulatory concerns and caused further liquidations totaling over $370 million.
Crypto Market Cap Plunges Below $1 Trillion
The total crypto market cap has recently broken down below the resistance level of $1.04 trillion after being unable to hold support. This decline has resulted in millions of dollars in liquidations, with Bitcoin (BTC) plummeting past the crucial horizontal support at $20,000.
Negative News Impacts Crypto Industry
The recent downturn can be attributed to a series of negative news stories affecting the sector, including the shutdown of Silvergate and a lawsuit against KuCoin regarding the alleged sale of unregistered securities. These events have had a significant impact on the overall market, with exchanges such as Coinbase and Huobi experiencing major decreases in value and lawsuits being filed against Kraken and KuCoin further destabilizing faith among investors.
Bitcoin Breaks Through Support Level
The leading digital asset, Bitcoin, has seen its price fall below important support levels resulting in a large crash across the entire market sector. Many other cryptocurrencies depend heavily on Bitcoin’s performance, so this drop has had an even greater effect on other coins causing massive losses for traders with long positions.
Ethereum Hit By Regulatory Concerns
The New York Attorney General’s suggestion that Ether may be considered a security combined with SEC Chair Gensler’s comments have caused fear among investors resulting in significant drops in ETH prices leading to more liquidations totaling over $370 million in just 24 hours alone.
Conclusion: Bear Trap Confirmed?
The crypto industry is currently facing tumultuous times as its liquidity remains low due to major sell-offs from panic selling following highly negative news stories and lawsuits against key exchanges like Kraken and KuCoin which have created instability within investor faith. With Bitcoin breaking through critical support levels and Ethereum succumbing to regulatory concerns it looks like we may be seeing another bear trap confirmed this time around with more losses likely before any recovery can occur