The world’s foremost cryptocurrency, bitcoin, has had a significant week as it briefly hit the $22,500 benchmark on Friday. The crypto has been going through a tough time over the past month, trading below $20,000. Opponents even went so far as to predict a drop to $12,000 for the coin amid a broader bearish turn in the market. Nevertheless, it bounced back last week, breaking the $22,000 resistance mark before falling again. Today, bitcoin has climbed back up and is currently trading around $20,000.
Meanwhile, as the crypto ecosystem was hit by inflation, the price of Celsius fell 17%. The CEL token was up 13% on Sunday from a high of $1.7 on Monday to $1.43. At the time of writing, the crypto is stable in the $1.70 price range.
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Many events clash with each other due to extreme volatility in the crypto market
This season has been extremely volatile for the crypto market as several important events seem to be colliding. On the one hand, there is Ethereum Merge, a movement from the PoW consensus of the protocol to energy-efficient PoS. The much-awaited event has been the subject of much hype and market activities. This will happen on November 15 after being postponed several times due to several bottlenecks in the development process.
Another event analysts expect to affect the crypto market is the CPI release on 13 September. Some have said that the CPI, over the Ethereum merge, will determine the price of the crypto in the coming days. This, coupled with rising inflation rates, has caused the entire crypto ecosystem to come under constant attack.
The broader crypto market is bleeding
Right now the market is bleeding after the gains of the weekend. Ethereum is down 5% and is currently trading at $1,581. For Cardano’s native currency, it barely cleared $0.4783 after trading last weekend at $0.5209. DOGE price is down about 7% from its weekend spike. It is currently trading at $0.06067. As for XRP, it declined sharply from Friday’s gains of $0.3606 to its current $0.3371.
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Most of the altcoins are down at least 8% amid the current crypto bear market. It is also possible that Bitcoin will follow if it drops below $20,000. As things stand, there are mixed sentiments about the King Coin among investors and traders. Some believe it could rise to $22,000, while others predict it will reach an even lower zero mark. $12,000 is most popularly cited as the expected zero mark for bitcoin.
Featured image from Pixabay and chart from TradingView.com