Bitcoin only intensified its recent price drops by slumping to just under $20,000 for the first time in about six weeks.
The alternative coins suffer, too, leading to almost $400 million in liquidations from over-leveraged traders.
CryptoPotato reported the relatively stable price movements from bitcoin in the past week or so. After falling by $4,000 in the previous week, BTC spent most of this one around the $21,000 mark. It challenged $22,000 a few days ago but to no avail.
It had calmed at $21,500 yesterday, but that’s when Fed Chair Jerome Powell addressed the nation once again, essentially repeating the central bank’s previous stance on how to fight inflation.
The crypto markets, however, reacted with immediate price drops. Bitcoin, for one, dumped by $1,000 in hours and only kept plunging later on. As such, it dipped below $20,000 minutes ago for the first time since mid-July.
The alternative coins are in no better shape. Some, such as ETH, SHIB, and AVAX are down by double-digits. Ethereum has dropped below $1,500 after riding high above $1,700 two days ago.
With more violent retracements from most alts, the overall crypto market cap has dumped way below the coveted $1 trillion mark.
This enhanced volatility has harmed over-leveraged traders. Data from CoinGlass shows that the total value of liquidations in the past 24 hours is up to almost $400 million.
More than 125,000 traders have been wrecked so far, with the single-largest liquidated position taking place on OKX with the BTC/USDT trading pair – worth $3.5 million.
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