Bitcoin dipped nearly 8% to touch lows of $30,990 on May 9 amid protracted selling. Amid the broad selloff, Bitcoin is set to mark its fifth consecutive day of losses, consequently setting new record lows for 2022.
At the same time, the second-largest cryptocurrency Ethereum (ETH) fell more than 7% to touch lows of $2,251 on May 9. ETH is now down more than 35% from the start of the year.
Alternative cryptocurrencies otherwise referred to as Altcoins even suffered a harder hit as most posted double-digit losses. According to CoinMarketCap data, Solana, Terra Luna, Cardano, Shiba Inu, and several altcoins especially in the top 100 have recorded losses between -12% and -19% in the last 24 hours.
According to CoinGlass, there have been nearly $725.34 million in liquidations across the crypto market within the last 24 hours. Albeit, cryptocurrencies such as 1inch, Waves, and Near Protocol managed to suppress the selling pressure slightly and were trading in the green at the time of publication.
Cryptocurrencies have been slowly deepening their losses since May 5, when they plunged abruptly amid a broader stock market sell-off in which the Dow Jones Industrial Average and Nasdaq Composite experienced their worst single-day dips since 2020. Losses however steepened over the weekend as additional sell-side pressure was generated.
For over a year, the crypto market, driven by Bitcoin, has remained closely connected with equities. On Monday, all three main stock indices were down.
“Bitcoin has followed the lead of the equity market, extending lower after a weak April,” said Katie Stockton, founder of Fairlead Strategies. “Short-term momentum has deteriorated … and bitcoin is no longer oversold from a short-term perspective.”
Stockton also stated that while bitcoin has no counter-trend or reversal signals at the moment, the stock market is expected to rise this week, which might have an impact on cryptocurrencies.
Key U.S. inflation data for April, due to be released Wednesday, could be a temporary “turning point” for Bitcoin, according to Yuya Hasegawa, a crypto market analyst at Japanese bitcoin exchange Bitbank. Hasegawa added that he sees bitcoin trading between $30,000 and $38,000 this week.
CryptoQuant recently indicated that the timing of short-term holders moving a comprised 11,760 Bitcoin to multiple crypto exchanges coincided with the start of bitcoin’s decline on May 5. Philip Gradwell, chief economist at Chainalysis noted huge BTC inflows into crypto exchanges from private wallets stating: ‘’Private wallets are now 40% of exchange bitcoin inflows rather than the typical 10%, which means there is a lot of extra sell pressure – and it is a similar story for ETH…’’
Even though $30,000 is a popular floor level among crypto pundits, some fear Bitcoin might fall below $25,000 or even lower. Cryptoanalyst, Matthew Hyland sees Bitcoin reaching $28,800 next. Meanwhile, Veteran trader Peter Brandt earlier predicted that bitcoin might be due for a severe correction, with the price dropping to $27,000 in the near term.
Bitcoin trades at $31, 753 at the time of publication.
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