Bitcoin drips below $20k for the first time since 2020. Almost immediately after breaking through the 20k level, we went low at $19,100.
The situation for the leveraged is critical, and they could face their margin calls. We are in such a high moment of inflation, with rises in interest rates, very expensive oil prices, and this unstable geopolitical situation that can turn the market into a vicious circle.
Bitcoin broke below 20k after a failed cycle, indicating this will break down. It has big implications on other financial assets next week. Cost of capital (Corporate bonds) jumped to +107.8% year over year, making it expensive to hold financial assets, including Cryptos.
The market has been in a state of flux for months now, and it’s not going to get any easier for investors anytime soon. Bitcoin is now trading at $19,200, Ethereum below $1,000
If Bitcoin closes weekly candle below 20k, this will be a huge crash down to 12k. All cryptos are currently in the red. A similar trend is
observed in the NFT spaces as sales continue to drop and NFT buyers vanish from the NFT marketplaces.