Bloomberg News reports that losses related to cryptocurrency became deeper, with the popular DeFi tokens like Avalanche and Solana dropping more than the bellwether Bitcoin sector. The same is taking place as concerns related to contagion are escalating in the wake of the hedge fund collapse of Three Arrows Capital.
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Bitcoin plunged below $20,000 first time in a week almost, as the absence of sustained upward momentum of the token led some technical analysts to increase the chances of declines further.
The largest digital currency dipped by as much as 2% before it recovered slightly for trading at $20,068 in New York at 9:09 is The MVIS CryptoCompare Digital Assets 100 index, which shows results after measuring the top 100 tokens, dropped by as much as 4.1%. Solana was found dipping by as much as 6.2%, and Avalanche dived by as much as 7.2%.
The relatively steady trading of Bitcoin since it crashed to a low of $17,560 on June 18th had triggered a wave of optimism that the stage for the rebound of the crypto market was in line. However, the crypto sector continues to be under pressure from the efforts of the central bank to drain liquidity, in addition to a series of high-profile blowups related to crypto that dent investors’ confidence.
Bloomberg News reports that the more stable crypto prices of late have offered some relief given that there have been negative incidents in headlines. He is associated with Oanda as a senior market analyst. He said that he fears that there are more to follow in the coming weeks. He wonders whether the community expects the same, given the incapacity of getting traction above $20,000.
