Inflation Worries Cause Bitcoin Market Cap Lose $800 Billion

Inflation Worries Cause Bitcoin Market Cap Lose $800 Billion

Bitcoin, the bleeding king of cryptocurrencies, has been a prey to inflation for the past 24 hours by slipping over 15% in the markets, currently trading at $24,200. Even the market's most popular futures indices, Dow Jones, S&P, and Nasdaq 100 are down over 1.31%, 1.71%, and 2.15% respectively.

It is completely evident that markets have changed moods from optimism to apprehension that the inflation might not plateau but rather keep on soaring high in the future and that too for longer than perceived.

Since the expectations of the Fed meeting this week's expectations, with policyholders deciding to raise the interest rates by 50 bps have sent a shock wave to the investor sentiments in the market.

With the Bitcoin market cap currently sitting at $488 Billion from the all-time high of $1.3 Trillion, it roughly registers a market fall of about 64% in just a matter of 8 months.

Roughly $778 million were liquidated in the crypto market in the past 24 hours, according to data from Coinglass.

Even Ethereum has seemed to lose by 15%, registering a liquidation figure of $302 million and currently changing hands at $1,235.

Further support levels to look for ETH and BTC are at $1,100 and $22,800 levels respectively.

Inflation, Black Swan Event, and Celsius Impact

Expecting a black swan event like Terra Collapse was the last thing that was needed that did impact the bitcoin downfall. Although the recent deterioration of Celsius for pausing withdrawals to stabilize liquidity has also caused a negative uproar in the markets.

Roaring Dollar Biting and Bleeding Risk Assets

With the FOMC meeting scheduled for June 15th, the chances of getting a 75 bps of hike seem to be on the discussion table. Whereas $DXY is trading just under 105, this seems to progress really fast towards 20-year highs since 2002.

Is it the same ol' "BUY THE DIP" time?

Observing the current circumstances, it appears that Bitcoin bulls have left the ground.

Following supreme risk management, this market opportunity can be exploited well provided the short/mid-term pain has to be taken in against a long-term vision.

But on any given day, the possibility of blowing up and using leverage in highly volatile markets can lead to absolutely heavy losses.

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