On Monday, the cryptocurrency industry was on edge as bitcoin fought to hold above a critical level, with investors concerned that issues at large cryptocurrency companies may trigger a wider market shakeout.
In early London trading hours, Bitcoin was trading slightly under the symbolic figure of $20,000. For the first time since the end of the year 2020, Bitcoin had fallen below the $18,000 barrier.
Its decline is the result of issues at several major industry companies. Other cryptocurrency investors may be forced to liquidate their holdings to fulfil margin calls and recoup losses if prices continue to fall.
According to a recent Twitter post by a crypto specialist, SOL’s price is in jeopardy as a result of the Celsius and 3AC drop. In a Twitter discussion, a well-known crypto investor explains why he came to this conclusion.
The reason for this is that a large SOL whale put $160 million on the Solend protocol to draw $108 million. The Solend protocol decided to contact the whale and try to strike an agreement.
According to the analyst, there are currently three significant liquidations.
The expert goes on to say that this action caused even more communal discord. And the Solend protocol raced to correct its error by nullifying this single vote.
BTC’s price trend has mirrored that of the index to some extent. There are concerns that BTC has not yet found its bottom. The fundamental reason seems to be that BTC may be subject to traditional stock market fluctuations.
History has shown that stocks only bounce back after the US Federal Reserve loosens monetary policy.
The upside is that crypto investors may now be able to predict when BTC will reach its bottom. The price of BTC can still rise.
The issue with this silver lining, though, is that the U.S. Fed has not indicated any intention of loosening monetary policy—quite the contrary, as evidenced by the highest percentage increase in interest rates in the last 40 years. The Fed has also stated that there will be other rate rises during the year.
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