What is happening in cryptocurrencies?

Hello again people!😌

On the day of this past Wednesday, a somewhat unique situation occurred for a few hours in the world of cryptocurrencies. While the entire universe was sinking, bitcoin and ethereum seemed to hold their own, becoming a kind of refuge within the crypto universe.

The two largest digital currencies by capitalization managed to hold their supports well into the afternoon. Bitcoin even turned green at times. However, the problems of Coinbase, the inflation data in the US and the final implosion of a crypto stall (Terra Luna and USD Terra) have ended up 'bursting' the supports of bitcoin and ethereum.😛

In the last 24 hours, bitcoin has dropped around 15%, losing $27,000 per unit at times. Experts believe that $25,000 could act as support, but the truth is that the only support that seems really resistant is at $20,000, so it would not be unusual to see falls to that area.

To those who go further and launch an even more chaotic forecast: Jeffrey Halley, senior market analyst, Asia-Pacific, OANDA, assures that he sees in his charts a drop in bitcoin to $17,000 per unit, a terrifying image for investors. cryptocurrency lovers.
The case of ethereum is, for now, somewhat less dramatic. The second token by capitalization drops 23% and falls to the $1,850 area, having broken through the $2,300 support. However, Ether does seem to have relatively solid support in the $1,800-1,700 area, where it built a double bottom in the summer of 2021 that served to sustain all subsequent rallies.

Beyond ether and bitcoin, the crash is absolute in the crypto universe. Some specialized media have come to ensure that these falls can lead to the de facto disappearance of some of the weakest cryptocurrencies. Regarding the top 10, Solana, BNB, XRP or Cardano are left more than 50% in the last 24 hours.

What is happening in cryptocurrencies? 😅

The combination of negative factors is long and very heavy for cryptocurrencies. The tightening of financial conditions in the markets has not sat well with some cryptocurrencies that have benefited during the last two years from zero interest rates and a market flooded with liquidity that has raised all the 'ships'. Now, inflation brings central banks back to reality. Rate hikes and stimulus withdrawals are eating away at risk assets. Cryptocurrencies are pure risk.

Brian Armstrong himself has tried to explain himself with better luck on Twitter, but the fuse was already lit and investors have continued to sell their cryptocurrencies. A very dangerous 'herd effect' is taking place for the market. The first sales have led to corrections which in turn lead to more sales. The crash in cryptocurrencies is served.

What is happening in cryptocurrencies?
The combination of negative factors is long and very heavy for cryptocurrencies. The tightening of financial conditions in the markets has not sat well with some cryptocurrencies that have benefited during the last two years from zero interest rates and a market flooded with liquidity that has raised all the 'ships'. Now, inflation brings central banks back to reality. Rate hikes and stimulus withdrawals are eating away at risk assets. Cryptocurrencies are pure risk.

Another key issue has been Coinbase's earnings release. The cryptocurrency platform plunged 26% on Wall Street after reporting worse-than-expected results. As if this were not enough, the CEO of Coinbase came to recognize that in the event of a hypothetical bankruptcy of the firm, investors would have difficulty recovering their investments in cryptocurrencies, which has unleashed a selling panic due to what could happen in the future.

Brian Armstrong himself has tried to explain himself with better luck on Twitter, but the fuse was already lit and investors have continued to sell their cryptocurrencies. A very dangerous 'herd effect' is taking place for the market. The first sales have led to corrections which in turn lead to more sales. The crash in cryptocurrencies is served.

💪✌️🤙