After the FTX debacle, Bitcoin has recently broken below the critical support of $19k. The price rejection from the $20.5k region even pulled Bitcoin below the $18k price level. The Bitcoin losses have also drastically affected altcoins, with most losing over 10% in value. The case is also the same for crypto stock prices, as we have seen them plunge in the past 24 hours. Most companies have registered double-digit losses going even up to -20%.
Bitcoin’s price action
The problems with FTX have resulted in a major negative sentiment in the market. So, when Bitcoin fell below $20k support, the selling pressure increased drastically. The decline from $20k to $19k didn’t take much time at all. Bears took control and drove Bitcoin’s price to less than $18k for a while, making a low of $17,276.
It is good that the price of Bitcoin has jumped back now because we even moved below the 100 hourly simple MA. Staying below that could have meant further losses in the near future. But it doesn’t seem like the market has settled, and we will likely see further losses sooner.
At present, Bitcoin is trading below $19k, with that level posing a major resistance in the upward movement of the coin. If bulls are able to take control and breakthrough, we might see fewer losses than anticipated. However, if that doesn’t happen, we could fall to the previous levels of $17,250 and $16,800 quite soon.
Ethereum and altcoins
In the last 24 hours, Bitcoin has been down by around 11%, but Ethereum and altcoins have lost even more value. ETH is currently trading below $1,300 and is down 15.5% in the last 1 day. Other altcoins like XRP, ADA, DOGE, and Solana are also down 14.8%, 9.1%, 22% and 20%, respectively. Almost all altcoins are even in the negative in the last 7 days except Matic and Litecoin. They are up 10% and 5%, respectively, in the past 1 week.
Effect of Bitcoin’s collapse on crypto stocks
Bitcoin falling so drastically in 24 hours has impacted the stock market prices of many companies. Most of these are exchanges or mining firms that have recently gone public and have already been struggling with their share prices. We also have the infamous Microstrategy, which is the largest corporate holder of Bitcoin.
Microstrategy is currently trading at $211.84 and has fallen by 20.55% in the past 1 day. It shows how negatively the market has reacted to Bitcoin breaking its important support.
Then we have Coinbase, which is also down 10.78% down to $50.83 in the past 1 day. The exchange’s share prices are one of the most affected in this bear market and are trading 85% below their opening price last year.
Robinhood has also lost 19.04% of its value in the last 1 day and is now trading below $10. It is also struggling in terms of profitability and stock prices and is down 73% in the last 1 year.
Bitcoin mining companies such as Hut8 and Bitfarms are also down by 12.12% and 7.63%, respectively, in the last 24 hours. So, every company that has an association with crypto are significantly down.
I am saying this because the overall market sentiment was positive, with the S&P 500 moving up by 0.56% in the last 1 day.
What are your thoughts as crypto stock prices plunge with Bitcoin falling below $19k? And do you think it is because of the FTX controversy? Let me know in the comments below. And if you find this content informative, share it with your family and friends.
Also Read: Popular Web3 app LBRY lost the case against US SEC.
