The sharp downward trend continues in the crypto money market, especially Bitcoin. The largest cryptocurrency fell to $ 20,185 in the morning and saw the lowest level of the last 1.5 years.
Santiment data shows that investors are more active on Bitcoin in the $21,000-$22,000 range, but the heavy selling pressure suggests that whales are not yet able to influence the price. The current situation is developing in a way that will weaken the thesis of the optimists, who think that the $22,000 levels will be the bottom for Bitcoin.
Bitcoin continues to decline, losing 22 percent since the beginning of the week. While it is certain that the US Fed will continue to increase interest rates today, this is seen as the main factor triggering the decline in crypto money markets.
The current outlook for Bitcoin suggests that the probability of a move below $20,000 is higher than recovery. If Bitcoin starts trading below $20,000, it will be seen that this cycle is broken for the crypto money that has not slipped below the peak prices that occurred in the post-halving periods.
While developments in the global markets continue to severely suppress the price of Bitcoin, rumors that crypto hedge funds are on the verge of bankruptcy also cause panic selling to increase.
The latest rumor was that Singapore-based crypto hedge fund Three Arrows was also in trouble after Celsius suspending all transactions due to liquidity crunch this week rattled the markets. Although there is no official statement by the company yet, the slightest negative rumor contributes to sales in the markets.
The acceleration of Bitcoin's entries to the stock markets increases the risk of seeing below $ 20,000
The latest Blockchain data shows that the amount of Bitcoin sent to exchanges has reached the highest levels since 2018. This situation creates anxiety that investors who think that Bitcoin will lose more value may rush to sell their crypto assets.
While the Bitcoin price continues to decline, the weak response purchases increase the anxiety of investors. CryptoQuant data shows that 59,376 BTC entered high-volume exchanges in the last 24 hours, when Bitcoin fell below $21,000 again. This figure was recorded as the largest Bitcoin inflow seen after the November 2018 period.
At the end of 2018, when the record-breaking Bitcoin sales sent by cryptocurrency exchanges became the subject of sales, the largest cryptocurrency fell 50 percent from the price of $ 6,500 in November 2018, and bottomed at $ 3,000.