Bitcoin, ethereum and other major cryptocurrencies have gone into free fall after seeing wild swings this week.
The bitcoin price has again dropped under the closely-watched $20,000 per bitcoin level after clawing its way back over the psychological barrier it crashed under earlier this month that some fear could spell disaster.
Ethereum and other major cryptocurrencies BNB
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The bitcoin price has suddenly crashed, dragging down the price of ethereum, BNB, XRP, solana, … [+]
“Most short-term technicals point to an above-average chance of a final ‘washout’-style decline before this bottoms,” Mark Newton, technical strategist at Fundstrat, wrote in a note seen by Bloomberg and warning the bitcoin price could fall to as low as $12,500 and $13,000 in the short term.
In recent weeks, bitcoin miners who secure the network in exchange for freshly minted coins have been forced to offload their bitcoin to keep the lights on, analysis by Arcane Research found, adding downward pressure to the bitcoin price amid an energy cost spike.
“Bitcoin mining has become the most deciding factor for the crypto market overall,” Martin Hiesboeck, head of blockchain and crypto research at trading platform Uphold.
“Mining companies’ profitability is a factor of equipment (bought on credit, hence repayment obligations), running cost (electricity) and revenue (price of bitcoin). Until April 2022, miners held on to their mined bitcoin each month in expectation of rising prices. It now emerged that starting back in April, they began selling their entire monthly production of bitcoin (and even parts of their overall holdings) in anticipation of rising energy costs; they still need to pay for electricity. This depresses the price of bitcoin and hence the entire market.”
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The bitcoin price has crashed under $20,000 for the second time this month, sparking a crypto crash … [+]
The bitcoin and crypto price crash that’s wiped around $2 trillion from the combined crypto market since late last year has caused chaos for the crypto industry, with many fledging companies fighting for survival.
Crypto lenders such as Celsius have been forced to freeze withdrawals while others, including BlockFi, have had to seek emergency funding.
“Recent incidents, such as the Celsius transaction freeze, illustrate that crypto lending remains a regulatory gray area,” Ben Weiss, the chief executive of bitcoin ATM operator CoinFlip, said via email.
