Bitcoin (BTC) Falls as Analysts Look for Crypto Bottom

Bitcoin, Ethereal and other major currencies traded sharply lower on Thursday night as the global cryptocurrency market capitalization fell 8.7% to $886.54 billion.

Price performance of major coins
Currency 24 hours 7 days Price
Bitcoin USD/BTC -8.9% -31.1% $20,538.49
Ethereal EUR/USD -12.4% -39% $1,080.24
doecoin DOGO/USD -8.9% -28.9% $0.055

Top 24-hour gainers (data via CoinMarketCap)
cryptocurrency 24 hour % change (+/-) Price
USD Neutrino (USDN) +23% $0.97
UNUS SED LEO (LION) +1.1% $5.03
peace gold (PAXG) +0.75% $1,875.13

See also: How to get free cryptocurrencies

Because it is important: Fears of an impending recession hit risk assets on Thursday with cryptocurrencies and stocks falling into the red.

The S&P 500 and Nasdaq closed Thursday’s trading session down 3.25% and 4.1%, respectively. At press time, S&P 500 and Nasdaq futures were up 0.3% and 0.5%, respectively.

This week’s US rate hikes were followed by other central banks. the Swiss National Bank on Thursday it unexpectedly raised rates for the first time since 2007. The central bank raised its policy rate from negative 0.75% to negative 0.25%, Reuters reported.

Bank of England it also raised interest rates by a quarter of a percentage point, although the rate hike was in line with expectations.

OANDA Senior Market Analyst, Edward Moya, noted that US economic data indicates a slowdown in activity, prompting recession calls on Wall Street. Moya pointed to cooling housing starts and building permits and rising mortgage costs as examples.

“Traders went from hoping for a soft landing to fearing an impending recession. Some consumers are already behaving as if we are already in a recession and that is a worrying sign for many of the S&P 500 companies,” the analyst said, in a note seen by Benzinga.

“Rising recession fears are crippling appetite for risky assets and that is making crypto traders cautious about buying Bitcoin at these lows,” Moya said.

Pseudonymous cryptocurrency analyst Caleo noted that Bitcoin’s cyclical bottom was about 770-880 days after previous halvings. The analyst said that 766 days have passed since the last halving which took place on May 5, 2020.

Kaleo exposed the dynamics of Bitcoin supply and demand, saying that “the effect of supply inflation on price steadily decreases over time and almost appears to flatten out” in the thread.

Halving refers to mining rewards being reduced by 50% of the main currency after each set of 210,000 blocks is mined.

cryptocurrency trader justin bennett shared a BTC-USD price chart on Twitter and said that if the apex coin removes the trend line it drew and the $20,000 level, we could see a capitulation.

“There is still another 15-25% to go IMO. That means at least another 30% lower for most altcoins,” Bennett said.

Santimento said last week saw the biggest losses made in Bitcoin transactions since data became available in 2009. The market intelligence platform said high spikes in capitulation can and will “eventually herald bottoms.”

Read next: Jeffrey Gundlach Correctly Predicted Bitcoin Pulling Back to $20K – Here’s Your Next Crypto Call

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