The broader crypto market is witnessing significant turmoil and volatility with trade volumes skyrocketing. The crypto market has plummeted by 6%, wiping out more than $50 billion in investor capital.
Bitcoin failed to maintain those levels and crashed once again.
At the time of writing, the Bitcoin price is down 7.36% and trading at $18,745 with a market cap of $358 billion.
Along with Bitcoin, the broader crypto market is witnessing significant turmoil and volatility with trade volumes skyrocketing. According to an on-chain data provider:
“Trading volume in crypto markets, particularly Bitcoin, has increased. During the major swing down on Sept 27, BTC hit its highest level of trading since June 14th. Since bottoming out in late January, the volume has gradually increased throughout the year.”
It is worth noting that the Bitcoin price had reached its 2022 low of $17,500 in mid-June. Some analysts believe that if the selling pressure persists, Bitcoin may retest this level and fall even further. Currently, the bears appear to have complete control of the cryptocurrency market.
Along with Bitcoin, the broader crypto market has plummeted by 6%, wiping out more than $50 billion in investor capital. Ethereum (ETH) is down 7.6% and is trading under $1,300, while the other top ten cryptocurrencies are down 5-10%.
Global Macros Impacting Crypto
Although Bitcoin and the broader crypto market attempted to break through the grip of US equities, it couldn’t sustain much. The Global macroeconomic factors continue to have a significant influence on Bitcoin price. Since stocks, bonds, and commodities exhibit considerable volatility in the face of rising inflation, interest rate hikes, and a bleak economic outlook.
So far this year, the MVIS Crypto-Compare Digital Assets 100 Index has fallen by more than 60%. However, the fact that Bitcoin remains above its June lows leads some experts to believe that it may decouple from the equities markets.
According to an American media outlet senior commodity strategist Mike McGlone, Bitcoin and Gold may outperform other commodities as monetary conditions tighten.
McGlone added, "With the world on the verge of recession, central banks are raising rates at a record pace. Lower commodities and risk-asset prices may be the only way out, with deflationary implications for gold and its digital counterpart, Bitcoin.”
COINGABBAR VIEWS: In recent weeks, it has been seen that large economies and broader macroeconomic circumstances have a significant influence on the prices of the cryptocurrency market. After the Fed announced the interest rate hike on September 21, the broader crypto market was influenced significantly.
Read also: BITCOIN PRICE ANALYSIS CMP-$18800 Bitcoin has lost its total gain and slipped near the 61.8% fibo level
