On Saturday night, BTC fell below $18,000 for the first time since November 2020.
According to CoinMarketCap, the first cryptocurrency dipped momentarily to $17,721. Thereby, the lowest level since November 28, 2020 was fixed. BTC quotations have not fallen below $18,000 since then.
This is the first time in the crypto market history when Bitcoin went below the maximum of the previous bullish cycle. Santiment analysts say the negative mood towards BTC intensifies amid the prolonged decline. The same sentiment is reflected in the crypto Fear and Greed Index, which momentarily fell to a record low of 6 points.
Among the main factors weighing on the price are:
- an increase in the Fed’s key interest rate;
- the potential bankruptcy of Three Arrows Capital;
- problems of crypto financial platforms Celsius Network and Babel Finance;
- destabilization of USDD and other algorithmic stablecoins: USDN, USDX, MIM.
As of 12:30 (GMT+3), the price of Bitcoin (BTC) has already exceeded $20,700. However, the weekly decline is almost 14%, and the monthly one is over 30%. Therefore, negative macroeconomic factors and news background increase volatility, so the cryptocurrency market may continue to decline.
