Crypto carnage: Bitcoin breaks $19k, Ethereum below $1k

Crypto carnage: Bitcoin breaks $19k, Ethereum below $1k

My full comments to the reporter is as such:

Bitcoin falls below $20,000 for the first time since 2020 is expected by many after a series of unfortunate events. The confidence level dropped when the market capitalization falls below to $900 million and over $100 million of Bitcoin future contracts in the last 24 hours were liquidated.

Bitcoin falling below this range means we will see more liquidation triggers especially so for investors who are using leverage to short these positions. This will result to margin calls for investors who borrowed against it. I know many big funds who have liquidation positions around the price of $19,000 to $20,000.

Given the level of confidence lowering, “sharks” sees the opportunity as there is a lot of incentives to trade it down to pass the threshold point of many long term holders.

If Bitcoin falls between $14,000 to $19,000, the free falling effect will kick in. Many Bitcoin pledged as collateral would be forced to be sold. When that happens, Bitcoin may fall to a $12,000 range or lower.

With the rising inflation, hiking interest rates, projected recession, ongoing war and trying to recover from COVID-19 aftermath, Bitcoin is been testing under all these factors for the very first time. In order for Bitcoin and crypto market to recover, we also need to have some certainties over these macroeconomic concerns.

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Crypto carnage: Bitcoin breaks $19k, Ethereum below $1k

According to experts, the confidence level among investors dropped when the market capitalisation fell below $900 million and over $100m of Bitcoin futures contracts in the last 24 hours were liquidated.

Amid a wider cryptocurrency market carnage on the weekend, the largest digital currency by market capitalisation Bitcoin (BTC) has broken the $19,000 levels, the first time since December 2020, while the second largest crypto Ethereum (ETH) has broken the psychological $1,000 mark.

Bitcoin is currently down about 10% and trading at $19,040, after making a low of $18,905, according to data from Coinmarketcap.

ETH is down around 10%, trading at $992, after making a low of $986.

The overall market capitalisation of cryptocurrencies has fallen by 5% in the last 24 hours and currently stands at $853 billion.

According to experts, the confidence level among investors dropped when the market capitalisation fell below $900 million and over $100m of Bitcoin futures contracts in the last 24 hours were liquidated.

According to Anndy Lian, Chairman, BigONE Exchange, BTC falling below the $20,000 range will lead to more liquidation triggers, especially for investors who are using leverage to short these positions.

Former CEO of BitMEX Arthur Hayes says massive sell pressure can be expected in the spot markets as key levels for BTC – $20,000 and ETH – $1,000 break, as dealers hedge themselves.

We can also expect that there will be some OTC dealers that will be unable to hedge properly and might go belly up,” he says.

 

Original Source: https://www.moneycontrol.com/news/business/cryptocurrency/crypto-carnage-bitcoin-breaks-19k-ethereum-below-1k-8704271.html

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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