Bitcoin (BTC) fell hard overnight, dropping to $19,621, according to CoinMarketCap data.
Cryptocurrencies were on a roll last week, as most ended up in the green territory. Even though BTC fluctuated for weeks, it could stay above $20,000.
Bitcoin has fallen 3.72% in the past 24 hours and is trading closely near its seven-day low of $19,341.23, according to CoinMarketCap.
The cryptocurrency market has seen significant fluctuations in value, with Bitcoin's capitalization decreasing from $1.27 trillion at its peak to under 377 billion today – a drop of more than 50%.
The price of Ethereum has fallen 6.7% over the past 24 hours to $1,068, bringing its market capitalization down to $129 billion from its all-time high of $4,891.70.
The crypto market was not immune to the selling pressure caused by the bearish market, as more than 62,000 traders got liquidated. There has been over $180 million in liquidated during this period.
Ethereum leads with nearly $62 million liquidated during these 24 hours, followed by Bitcoin at just under $60 million and Solana's $3.42 million.
The crypto market has been on a steady decline for months now. The bearish action can be attributed to plummeting trading volumes, miner selling pressure, and high expectation of another rate hike from the Federal Reserve.
It's been a rough year for cryptocurrencies. The total trading volume has dropped to just above $50 billion, which is 86% less than it was at its all-time high of nearly $367.6 billion recorded on May 20th, 2021, according to CoinMarketCap analytics data.
With the price of Bitcoin continuing its decline, many miners are offloading their holdings to cover operational costs.
The long-term holders of bitcoin are facing losses of up to 33%. Unlike short-term traders, long-term holders don't sell their bitcoins for months or years.
Cryptocurrencies finally turned bearish after the 75-basis point hike announced by The United States Federal Reserve last month. The Federal Reserve is again meeting on July 26, with many expecting another 75-basis point hike.
It's possible that this meeting will lead to even more pain for all risk-on assets.