Bitcoin falls to lowest level in six months
The price of bitcoin fell to a low of $38,250 on the Bitstamp exchange on Friday, hitting its lowest level since early August.
The major coin is now changing hands at $38,800, struggling for a quick comeback.
On Thursday, the top cryptocurrency managed to recover $43,500. The uptick turned into a bear trap, with bitcoin losing 12% of its value.
According to data provided by analytics firm Coinglass, $372.65 million worth of crypto has been liquidated in the past four hours. Long positions account for over 90% of wipeouts.
Most altcoins beat even harder than bitcoin, with Avalanche (AVAX) and Binance Coin (BNB) losing double digits.
In the past 24 hours, a total of 183,239 merchant liquidations took place, with one BitMEX user losing $9.91 million worth of bitcoin in a single trade.
Some enthusiastic bitcoin critics are having a field day amid the ongoing cryptocurrency crash. “Black Swan” Writer Naseem Taleb Compares Bitcoin Traders to Doomed Gamblers Recent Tweet,As reported by U.Today, cryptocurrency mogul Mike Novogratz predicted that the largest cryptocurrency will break below $38,000, which is considered a key support level. Recently, he tweeted that crypto and tech stocks will remain under pressure as bond yields rise.
The rapid shift towards monetary tightening from the Federal Reserve has created a risky environment for cryptocurrencies and equities.
The central bank is widely expected to hike interest rates several times this year. According to a Reuters poll, three rate hikes are expected this year.