Blood Sunday: Bitcoin (BTC) drops to $26,000, Ethereum (ETH) drops 8.9%, Cardano (ADA) 14%, Solana (SOL) 12%
It hasn’t been an easy Sunday for the cryptocurrency market. The main assets of the markets are in sharp decline, following the price of Bitcoin (BTC), which has slipped below $27k and is now at $26,300k — a 7.5% drop in the last 24 hours. , according to Coingecko.
This is the lowest value since the last week of 2020, when the main asset on the market had a strong rally. In Reais, Bitcoin is quoted at R$ 135 thousand.
As is the pattern in bear markets, the situation for altcoins is even worse. The second-biggest coin by market cap, Ethereum (ETH), is also melting — down 8.9% and trading at $1424, a price not seen since January 2020.
There are several possible reasons for the downward pressures in the market. One factor ventilated by the US press is the inflation data in the country, which tends to get worse.
Overall, there is a major trend reversal in interest rates around the world. Previously close to zero, these low rates made investments in fixed income – generally more conservative – with less attractive earnings. Thus, capital’s risk appetite sought out riskier — and possible higher return — assets such as cryptocurrencies. This scenario is over and it shouldn’t come back anytime soon.
The melting of the Terra ecosystem (LUNA) has contributed to making new investors more insecure in the face of a large degree of uncertainty regarding stablecoins, which are the bloodstream of trades.
Even so, the resilient Bitcoin has been suffering and seems to be abandoning the $30,000 level for good. Other projects, newer and even more risky, are getting worse. Cardano (ADA) records the lead in declines among the top 10 coins on the market — 14%.
Solana (SOL), which has been proving to be a dysfunctional blockchain, is not doing much better — down 12.5%.