After a healthy recovery last week, Bitcoin has declined by more than 10% today amid ongoing speculation and fear over inflation and federal reserves action to control the outraging inflation rate. Bitcoin has witnessed one of the deadliest downfalls since January this year. The total market cap has shrunk by $140 billion and currently stands at $1.66 trillion.
BTC price had again fallen into the $35K zone and touched a low of $35,500 after 24 February, when Bitcoin price declined to the lowest point of $34,300 after touching the all-time high of $69,000.
Bitcoin leads the entire crypto market in a downward direction. Major cryptocurrencies lost more than 10%. Solana topped the list with a 15% decline within 24 hours.
The current bearing wave has been witnessed across all financial markets. S&P 500 down 5% and NASDAQ loses 5.5%.
Fed announcement over plan to curb the recession is considered a primary reason behind this slump. Although people are showing confidence in Federal Reserve Chairman Jerome Powell, there is a possibility that current inflation could trigger a recession.
The United States is currently witnessing a 40-year high in inflation.
Total Liquidation exceeds $400 million.
The current decline in Bitcoin price was completely unexpected, and as a result, it led to massive liquidation of the long positions. The total 24 hours liquidation has touched $450 million. During this period, more than 105,111 traders lost their position. The largest single position was liquidated at the Okex exchange, worth $3.34 million.
Even though the recent recovery in Bitcoin price was seen as a positive sign toward a bullish trend, many crypto analysts believed that Bitcoin price could hit its previous lowest price, the $34,000 level, before taking off to a higher price range. Moreover, the technical parameters are in sync with this forecast; the BTC price was abruptly rejected after crossing over the 100 day simple moving average line.
Bitcoin price could retrace in the short term, and a healthy consolidation could drive the price upward. Bitcoin could again fall to the $34K price range in the opposite scenario.
Gargi Sinha is working as Senior Journalist at Confea. She has completed her Masters in Journalism from Delhi University. She has interest in crypto and blockchain technology.