Home NewsStock Market News There are different reasons for the sell-off of Bitcoin after breaking the $22,000 mark | Anue Huge – CoinDesk

There are different reasons for the sell-off of Bitcoin after breaking the $22,000 mark | Anue Huge – CoinDesk

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There are different reasons for the sell-off of Bitcoin after breaking the $22,000 mark | Anue Huge – CoinDesk


Bitcoin flashed more than 8% on Friday (19th), smashing the $22,000 mark, and analysts were divided on the reasons for the sell-off.

At press time, Bitcoin was trading below $21,100, down more than 8 percent in the past 24 hours. Bitcoins worth $31.75 billion changed hands, and the total market value fell to $415.62 billion, down more than 13% this week.

Bitcoin is trading below $21,100 (Image: AFP)

Investors in the cryptocurrency world have become increasingly nervous after the recent bankruptcy of crypto companies such as Celsius, Three Arrows Capital and Voyager Digital and the collapse of so-called stablecoins, with the Federal Reserve raising interest rates and high inflation prompting investors to abandon riskier assets.

Bitcoin’s flash crash on Friday appeared to be linked to the dismal German inflation data, market experts said. As Bitcoin prices plunged, Germany reported its July producer price index (PPI) rose 37.2% year-on-year, well above market expectations of 32%, while CME’s FedWatch data showed traders predicting a September rate hike by the Federal Reserve The probability of a size 3 increased to 44.5% from 41% a day earlier.

GlobalBlock analyst Marcus Sotiriou judged that there seems to be no single catalyst that led to the massive sell-off of Bitcoin, but the value of Bitcoin is almost linked to the U.S. stock market, and Bitcoin fell with the U.S. stock market on Friday.

Analysts said that from a technical analysis point of view, the strength of the bulls is clearly weakening. Bitcoin was sold below the 100-day SMA.

Looking ahead, former Deutsche Bank trader Marcel Pechman concluded that the disappearance of BTC futures premiums, the liquidation of more than $470 million by leveraged buyers, and excessive stablecoin lending could all lead to further volatility in Bitcoin.

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