It has been a season of sell-offs in the fast-evolving market. The global cryptocurrency market has suffered its worst crash of this year. The total cryptocurrency market cap has fallen below the $1 trillion mark. Bitcoin and Ethereum prices seem to be steeply declining. Both the top cryptocurrencies are down 66.88% and 75.10% from their record highs.
The price of the top cryptocurrency Bitcoin (BTC) has also tumbled, falling as low as $21,033 in a massive crash triggered by multiple fears. As extreme fear persists in the crypto markets due to regulatory uncertainness, heightened inflation, and volatility, experts think Bitcoin may fall up to $20,000 in the current sell-off.
On the other hand, Ethereum’s price crashed to $1,075 the lowest level since January 2021. Despite bearish sentiments hovering over the market, Galaxy Digital CEO Mike Novogratz is quite optimistic about ETH Price. Mike believes that the largest altcoin, Ethereum will hold the $1k level.
Is More BloodBath for The Crypto Market?
Arthur Hayes, founder of Bitmex exchange believes that the crypto market might see severe loss if the top 2 cryptos Ethereum and Bitcoin, dropped below the critical levels.
In a recent tweet, Hayes stated that if Bitcoin and Ethereum Breach the $20k and $1k level respectively, massive sell pressure in the spot trading will come into play as the market makers have to post more collateral to maintain the position. Moreover, If the traders fail to cover their positions they will be forced to sell, creating even more sell-side pressure on the two tokens.
As per Hayes, this prediction is based on open interest and position in the options market. Thus, breaking below the aforementioned levels could cause dreadful selling pressure in the market.
He also mentions that the charts and the technical analysis won’t provide any insight into the current crypto market movements and jokingly recommends that “traders get out their Lord Satoshi prayerbooks and hope that the abovementioned levels hold the massive selling pressure”.