After a strong push above $20,000 on Tuesday, Bitcoin has failed to hold those levels and crashed once again. the Bitcoin price is down 6.36% at press time and currently trading at $18,774 with a market cap of $358 billion.
Along with Bitcoin, the broader crypto market is experiencing strong turbulence and volatility with trading volumes shooting up significantly. As on-chain data provider Santiment explains:
Trading volume has heated up for #crypto markets, and especially #Bitcoin. During the big leg down on Tuesday, $BTC peaked at its highest level of trading since June 14th. Volume has gradually risen all year since bottoming out in late January.
Courtesy: Santiment Note that back in mid-June, the BTC price had touched its 2022-low of $17,500. As per some analysts, if the selling pressure continues, Bitcoin can retest this level and move even lower. Currently, the bears seem to be in full control of the crypto market.
Along with Bitcoin, the broader crypto market has tanked by 6% eroding more than $50 billion worth of investors’ wealth. Ethereum (ETH) is trading 7% down under $1,300 and other top ten altcoins are down anywhere between 5-10%.
Global Macros Impacting Bitcoin and Crypto
Although Bitcoin and the broader crypto market made an attempt to break through the clutches of U.S. equities, it couldn’t sustain much. The global macros continue to impact Bitcoin price big time as Stocks, bonds and commodities exhibit strong volatility amid high inflation, interest rate hike, and a dim economic outlook.
So far this year, the MVIS CryptoCompare Digital Assets 100 Index has tanked by more than 60%. However, the fact that Bitcoin holds above its June lows makes some analysts believe that it could decouple from the equity markets. Speaking to Bloomberg, Stephane Ouellette, chief executive of FRNT Financial Inc. said:
“Followers of the ecosystem have been excited to see correlations with risk-assets begin to break, meaning the ‘fast-money’ speculative crowd may be losing their influence on the space”.
