The market price of bitcoin dropped below $39,000 on April 18 in a declining trend during the Easter holidays. The price of ether ETH fell below $3,000 for the first time since mid-March.
The combined market for virtual currency has lost almost $400 billion since April, with analysts warning that a disaster in the financial markets could cause the price of the coin to fall below $30,000.
The investors are bracing for the coming week.
The US stock market futures fell over the Easter weekend, as well as a decline in the US stock market futures. There are major first-quarter earnings reports and speeches by U.S. Federal ReserveFederal Reserve policy-makers that investors are bracing for.
The consumer price index for March showed an 8.5% increase over the year over year, levels not seen since 1981, despite the Fed's policy to fight U.S. inflation. Markets fear that these actions could cause a recession because Fed officials promised to do whatever it takes to bring inflation under control.
The market for cryptocurrencies fell below $39,000 and moved below trend line support, according to the data released by CoinGlass. Of these liquidations, 95% of orders were long positions, with the exchange Okex providing 45% of the total volume.
Tendencies have been reversing during the last week as traders moved their liquidity away from exchanges.
According to Glassnode data, $6.5 billion worth of BTC was withdrawn from exchanges in the week of April 11. More price moves were caused by the appearance of significant selling pressure when more liquidity left trading platforms.
After traders moved $4.3 billion worth of ether from exchanges, ETH is facing a supply crisis. The constant burning of ether also removes liquidity from the market. These movements could lead to a crisis of supply and a liquidity crisis.
Arthur Hayes, the co-founder of BitMEX, said the price of BTC and ETH could crash to $30,000 and $2,500 over the next two months.
Hayes wrote in a blog post that he is betting on a crash in ethereum and bitcoins by June.
At press time, the price of the BTC was just above $39,000, down 7.9% on the week. BTC was down 43.5% from its all-time high of $69,044 on November 10, 2021.
The ETH was trading at $2,910, down 9.6% on the week. On an annual basis, ether is up 24.1%. It set its all-time high at $4878 on the same day, and has been down 40.5% since.