The crypto sell-off is in full swing and Wall Street isn’t even open yet.
Bitcoin (BTC) faced sustained selling pressure ahead of Wall Street’s opening on June 13, with Ether (ETH) returning to multi-year lows.
Hourly candlestick chart BTC/USD (Bitstamp). Source: Trade View
Bitcoin is struggling for $24,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD breaking a 10-month low from mid-May.
The largest cryptocurrency has faced bearish triggers on multiple fronts, coming from both inside and outside the cryptosphere.
The Celsius fintech protocol was on the verge of collapse after it ceased operations, leaving billions of dollars in collateral at risk for cryptocurrency markets. In an event ironically similar to what caused the May debacle, Bitcoin and altcoins continued to fall as fresh uncertainty filled the air.
Macro conditions were little better as Asian markets sold off and Wall Street futures appear to have continued the downtrend established over the past week.
Inflation concerns also lingered ahead of key Federal Reserve comments due on June 15th.
“I call it… a long bear,” summarized a popular Crypto Chase analyst:
“We really don’t know when the Fed will change tone, war developments in Ukraine, upcoming US presidential election, supply chain issues, etc. Markets don’t like uncertainty. Sure I can be a rebound trader, but an investor? Not yet.”
Others were more confident on both longer and shorter timeframes.
“The Fed is expected to raise levels at next week’s meeting,” Cointelegraph contributor Mikael van de Poppe added:
“Normal and very expected. However, this expectation is out of line in the direction of large scale growth (75bp). I do not see it. Probably 50 bps and that’s it. Markets always overreact.”
Meanwhile, the total cryptocurrency market cap fell below $1 trillion for the first time since February 2021.
Candlestick chart of cryptocurrency market cap for 1 week. Source: Trade View
Ethereum has a price target of $1,000
Continuing the bearish theme, altcoins appeared to lose even more value throughout the day.
Related: Lowest Weekly Close Since December 2020 – 5 Things To Know About Bitcoin This Week
Ether, which just dropped below its weekend strike price, is now trading below its all-time high set during the previous Bitcoin cycle.
At the time of writing, ETH/USD is hovering around $1,230, having last touched this level in January 2021. The old cycle high, set in January 2018, was around $1,530.
ETH/USD weekly candlestick chart (Bitstamp). Source: Trade View
“Things are getting so bad so fast that the 200-watt SMA for $BTC and $ETH is being seriously tested,” concluded Chris Berniske, founder of cryptocurrency venture fund Placeholder:
“$ETH will likely break clean and head for the bigger psychological test of $1,000 and BTC will put up a big fight, but with the clouds on the horizon it’s hard to see it not playing $20,000 and below.”
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every step of investing and trading involves risk, you should do your own research when making a decision.