Ethereum (ETH) has fallen below $1,000 for the first time in more than a year as the broader crypto market continues to slide south with no quick remedy in sight, or at least not yet.
Ether (ETH) was one of the cryptocurrencies that performed particularly poorly, falling 7.32 percent over the past day to follow Bitcoin’s loss. The second largest cryptocurrency by market capitalization is presently selling at $950, down 37.4 percent in the past week.
Examining the bitcoin market as a whole over the previous two weeks reveals that its entirety has been falling. This decline has deepened over the past week, wiping almost $300 billion from the market value of all cryptocurrencies.
Suggested Reading | Bitcoin (BTC) Drops Below $18,000 – What Can Stave Off The Selloff?
Ethereum Loses Over Half Of Its Value In 7 Days
However, it is not simply crypto that’s experiencing a major beat-down. Wall Street is likewise in disarray, as the S&P 500 has shed 4.25 percent over the past week. During the same time frame, the Dow Jones Industrial Average fell 4 percent, while the NASDAQ dropped sharply less than 2 percent.
As is normal when Bitcoin declines, so do alternative cryptocurrencies. This negative trend is led by Ethereum, which has fallen below $1,000 for the first time since January 2021. In approximately seven days, ETH has lost more than half of its value.
In reaction to worries about the US central bank’s 75 basis point rate hike – the largest increase in the last three decades – both cryptocurrencies and stocks experienced a severe bear market.
ETH total market cap at $117 billion on the weekend chart | Source: TradingView.com
Following a similar daily decline, BNB also fell below the $200 round-number threshold. Cardano, Solana, Ripple, Dogecoin, Pokadot, Siba Inu, and TRON, to name a few, are experiencing more difficulties.
More Pain In The Offing?
Analysts caution that additional losses are forthcoming. They stated that the Federal Reserve has just begun to increase interest rates and has not yet sold any assets from its balance sheet.
The U.S. Bureau of Labor Statistics also issued data for the Consumer Price Index (CPI) – a metric used to measure inflation – coming in at 8.6 percent for the month of May, which had an effect on the continuous volatility of cryptocurrencies.
Technically, ETH’s price must reclaim $1,000 as its psychological support; if this level is breached to the negative, the token may target $830 as its next objective.
In February 2018, the same level acted as resistance, preceding a 90% drop to roughly $80 in December 2018.
Suggested Reading | Ether Drops Below $1K, Dragged Down By BTC Slide – What’s The Next ETH Support?
Featured image from Futurity, chart from TradingView.com
ApeCoin Shed $2.5 Billion From Its Market Cap In May – Investor Appetite Fading?
The month of May’s crypto market disaster did not fail to bring down along with it one of the “rising stars” in the crypto space, ApeCoin.
ApeCoin price has shown a robust performance in the face of the crippling crypto market crash. However, the bulls were still able to lift APE by about 50% higher from the coin’s low at $3.11.
As of this writing, APE was trading at $4.25, up 4.1% in the last seven days, and selling just below the newly established swing high at $4.35.
Suggested Reading | Bitcoin Steady Above $20K After Drop To $17K – A Slow Climb To Green?
ApeCoin Market Cap Down By Half
Thursday’s data from Coingecko indicates that ApeCoin is among the top 50 crypto assets by market capitalization, having closed May with a market value of around $1.27 billion.
As a result of the decline in the value of other digital currencies, this amount appears large, but it reflects a 56 percent decline from its market value. APE’s high trading volume of $3.37 billion as of May 1 translated to a market value in excess of $4.55 billion.
A high volume of liquidation by coin holders rose on May 1 and accelerated from May 9 to 13, contributing significantly to the decrease in APE’s market value.
Experts say this is because of the broader geopolitical and global climate, including uncertainties in the ongoing war in Ukraine, among other factors.
Factors Contributing To APE Price Decline
It’s not just in the crypto field that things are not looking bright. Living expenses are growing, interest rates are rising, a recession is approaching, and inflation is skyrocketing. The US S&P 500 is currently in a bear market, and stock markets are shaky as well.
APE total market cap at $1.27 billion on the daily chart | Source: TradingView.com
According to a number of market analysts, these are some of the causes chipping away at the value of APE.
On May 1, APE began at $20.02, achieved an intraday high of $20.04, dropped 21 percent to an intraday low of $15.69, and ended at $15.97.
As a result of losing more than one-fifth of its value on the first trading day of the month, APE was unable to recover and continued to fall throughout the rest of May, reaching new lows.
Suggested Reading | Dogecoin Price Jumps As Elon Musk Reiterates Support For Meme Crypto At Qatar Forum
APE began trading on May 1 at $20.02, achieved a monthly top of $20.04 on the same day, hit a monthly low of $5.25 on May 11, and finished the month at $6.76.
This represents a 66 percent decline between the opening and closing prices of APE in May.
Featured image from Gravitate.news, chart from TradingView.com
By The Numbers: The Worst Bitcoin Bear Markets Ever
Bitcoin is now officially in another bear market after the crash that rocked the market last week. After falling more than 70% from its all-time high, investors across the space had started to retreat from the digital asset due to this new price trend. However, trends like these are not new for bitcoin. Although the present market may seem worse than previous ones due to it still ongoing, there have been some brutal bear markets in the past.
A Blast From The Past
It can often be helpful to take a look at the previous market cycles for bitcoin to see that this is nothing out of the ordinary. Yes, the bull and bear trends of this market have deviated from what has been recorded in history but it still remains very similar to what has been recorded in the past.
For bitcoin, the alternation between bear and bull markets has always been part of the experience. It has been through several of these boom-bust cycles in its 13 years in existence and it is not expected to change anytime soon.
Related Reading | Over $250 Million In Liquidations As Bitcoin Recovers Above $20,000
Bitcoin has so far lost about 73% from its most recent cycle peak but it is not the first time that something like this is happening. Looking back to the November 2013 market shows that bitcoin had actually continued to decline until it finally ended its 407-day losing streak with a bottom at 85% of its all-time high value. This had marked the end of that stretched-out bull market.
For those in the market, the 2017 bull-bear cycle is fresher in their minds compared to 2013. However, like in 2013, the drawdown was just as brutal, although lasting a shorter time. What had lasted for approximately a year had ended with poor performance of an 84% bottom.
BTC bear markets are always brutal | Source: Arcane Research
Since the digital asset continues to maintain this trend closely, it is expected that the drawdown will continue. Going by the previous two examples, one can easily draw a conclusion that a historical movement will see bitcoin bottom out in the mid -80s. Thus, the bottom is most likely not in and the market is likely to see BTC at $11,000 before the expected market bottom in late 2022.
Will Bitcoin Follow?
While looking at previous movements can help point a direction where the price of bitcoin might end up, there are always new information and events that can heavily impact it. For one, the macroeconomic atmosphere has been a big player in the movement of the digital asset in recent terms. As fears around inflation, fed rate hikes, and less liquidity circle the market, bitcoin had been directly impacted by this.
BTC enters bear market | Source: BTCUSD on TradingView.com
This has led to a more intertwined market when it comes to bitcoin and the broader financial markets. As the cryptocurrency space grows larger, it is experiencing greater implications from the Fed decisions, stock market performance, U.S. elections, and crypto regulations that have been ramping up.
Related Reading | Cardano Vasil Hard Fork Launch Date Set, Time To Buy The News?
Nevertheless, the long-term play for bitcoin remains the best bet. As emotions run high, bitcoin veterans take to accumulating and hibernating while waiting for winter to pass. If history is anything to point to, by the next bull market, the price of bitcoin could reach as high as $200,000.
Featured image from Forbes, charts from Arcane Research and TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
‘Bitcoin Is Dead’ Google Searches Skyrocket, Bitcoin Obituaries Records 15 Deaths This Year
According to the Bitcoin Obituaries list, bitcoin has died 15 times in 2022, and the last obituary written about bitcoin’s death was on June 18, in a recent statement that said: “Bitcoin Will Not Recover.” Interestingly, Google Trends data shows that the search phrase “bitcoin is dead,” is estimated to hit an all-time high this week.
The Old Saying ‘Bitcoin Is Dead’ Comes Back to Life
In recent times, you may have heard the phrase “bitcoin is dead,” or something similar. A great number of people truly believe that bitcoin is dead while many believe the crypto asset is the future of money. The past two weeks have been gruesome for bitcoin as prices dropped to a low of $17,593 per unit.
The analytics company Glassnode shows the losses during the last three days have been massive. “The last three consecutive days have been the largest USD denominated Realized Loss in bitcoin history,” Glassnode detailed. “Over $7.325B in BTC losses have been locked in by investors spending coins that were accumulated at higher prices.”
Meanwhile, two days ago, the Bitcoin Obituaries list hosted on 99bitcoins.com indicates that bitcoin has recorded its 15th death of the year. The obituary statement was written by the gold bug and economist Peter Schiff via Twitter. Schiff has always thought bitcoin is worthless and he has said multiple times that BTC’s price is headed to zero. Schiff’s recent bitcoin obituary called “Bitcoin Will Not Recover,” says the current crypto crash is just the beginning. Schiff’s obituary statement says:
Long-term bitcoin HOLDers aren’t worried as they’ve been through 73% declines before. But previous declines didn’t involve anywhere near the total market cap lost during this decline, nor did they involve massive leverage. This crash is just beginning. Bitcoin will not recover.
‘Bitcoin Is Dead’ Google Searches Estimated to Rise Significantly This Week
Bitcoin.com News recently reported on Schiff’s bitcoin opinion last week when he said crypto advocates’ “need to sell bitcoin to pay the bills will only get worse as the recession deepens.” Google Trends data shows that there’s been an awful lot of “bitcoin is dead” searches and this week’s GT data score for the phrase “bitcoin is dead” is expected to hit an all-time high.
The last time GT data had shown the search phrase reach a high was during the Terra blockchain fiasco, and during the week of May 8-14, the search phrase “bitcoin is dead” reached a 38 out of 100. So far, according to the Bitcoin Obituaries list hosted on 99bitcoins.com, 2022’s list beats 2020, 2012, 2011, and 2010.
2021 saw approximately 47 obituaries and 2020 saw only 14. The lowest number of deaths was in 2010 with a single obituary called “Why Bitcoin can’t be a currency,” which was published on December 15 that year. To date, bitcoin has died 455 times so far according to the Bitcoin Obituaries list.
Tags in this story
99bitcoins, Bear Market, Bitcoin, Bitcoin (BTC), Bitcoin bears, Bitcoin bulls, Bitcoin Dead, Bitcoin Eulogy, Bitcoin Obituaries, Bitcoin Price, BTC death, Google Trends Data, Independent author, Market Carnage, Markets, Peter Schiff, Prices
What do you think about the ‘bitcoin is dead’ statement and the Bitcoin Obituaries list? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Bitcoin6 days ago
What to know about Bitcoin’s pricing model and whether BTC will be ‘part of it’
Binance6 days ago
Binance Suspends Direct Deposits And Withdrawals In Brazil
Altcoins6 days ago
The many reasons why DOGE believers aren’t done yet
2:1 ratio of sellers6 days ago
Cumberland Sees Massive OTC Moves During Crypto Market Rout — ‘Most Volume We’ve Seen This Year’
ada6 days ago
Cardano [ADA]: Plotting the path to a 125% rally after 1 August
3AC6 days ago
Class-Action Lawsuit Accuses Terraform Labs Of Misleading Investors
Altcoins5 days ago
Litecoin [LTC]: How traders can leverage these profitable outcomes
Bitclub Network6 days ago
Namibian Educator: Low Level Of Crypto And Blockchain Adoption In Africa Compelled Me To Write A Book