Bitcoin decline
The world’s largest cryptocurrency token Bitcoin is currently under tremendous pressure. On Tuesday, November 18, Bitcoin slipped below $90,000 for the first time in seven months. This huge fall in recent times has once again raised old questions in the crypto market, is this just a small correction or the beginning of a new four-year downcycle?
Continued losses have taken Bitcoin down nearly 30% after hitting its record high of $126,000+ in October. Bitcoin fell nearly 2% to $89,953 during Tuesday afternoon trading in Asian markets, deepening concerns.
Is this a sign of crypto’s new cool?
The crypto market is known for its ups and downs, but this time the fall has been so sharp that even many experienced investors have got confused. Some traders believe that this is only a short-term correction, while many experts have a completely different opinion. He says that the market sentiment has weakened and this decline could be the beginning of a bigger cycle, as has been seen many times before.
Why is Bitcoin collapsing?
In such a situation, the real question now is whether this is the beginning of a new crypto winter, or is the market going to bounce back strongly after the decline. Experts believe that the biggest reason behind this decline is the fear spread in the market. Bitcoin has been in a steady decline for the past several weeks, but slipping below the $90,250 level, which was last seen in April, is having a negative impact on investor confidence.
This sudden sharp decline triggered panic selling throughout the crypto ecosystem, and many small investors quickly sold their holdings to avoid losses. Apart from this, increasing uncertainty regarding interest rates in America, tired market after a long rally, global economic pressure and selling by big investors, all these together have pushed the price of Bitcoin down.
Ether and XRP also under heavy pressure
The decline was not limited to Bitcoin only. The second largest cryptocurrency Ether (ETH) is also continuously weakening. ETH is down nearly 40% from its August high and traded 1% lower at $2,997 on Tuesday.
Similarly, XRP also suffered a sharp fall and slipped below the strong resistance level of $2.30. Demand for XRP has weakened due to repeatedly hitting resistance and increasing profit-booking, while the surge in institutional trading volumes shows that this level is difficult to break at the moment.