Bitcoin Backpedals To $16,000 Level As Crypto Market Sheds $50 Billion

In the past 24 hours, Bitcoin has slid beneath the important support level of $17,000 as weekly bears have taken the driver’s seat.  The most popular cryptocurrency is presently selling at $16,723, a decrease of 2.5% over the past week.

There has been significant selling pressure on the cryptocurrency market as a whole, resulting in a 6% correction and a $50 billion loss over the past 24 hours. As a result of the latest price decline, BTC has let go of all weekly gains and returned to the red zone.

TradingView and Cointelegraph Markets Pro data followed BTC/USD as it reached multi-day lows on Bitstamp at $16,928. The pair reversed its entire advance to one-month highs in response to the most recent macroeconomic data and the US Federal Reserve’s decision to raise interest rates.

Similarly, the price of Ethereum has dropped more than 7% in the previous 24 hours, according to figures from CoinGecko. The second-largest cryptocurrency has decelerated during the past week, trading below $1,178.

Bitcoin and Ethereum accounted for the vast majority of the $117 million in leveraged positions that were wiped out throughout the entire cryptocurrency market.

The events surrounding Binance have unnerved crypto investors, who have been cautioned against overreacting to “FUD” concerning the exchange and others. Mazars Group, the auditor for Binance’s Proof-of-Reserves, severed ties with the exchange on Friday.

In addition, the current crypto market decline mirrors Wall Street’s severe downturn. Friday marked another 1% fall for the Dow Jones. This price decline is the result of the central bank’s vigorous monetary tightening.

Bitcoin appeared to conclude the year on a positive note at one point after reacting positively to US inflation and Consumer Price Index (CPI) statistics as well as subsequent Fed interest rate decisions.

The CPI measures the rate of price change for a range of goods. The rate increased by 0.1% in November, which is slower than the rate of inflation in October. At that time, the CPI report suggested a 0.3% price increase.

Wednesday, the U.S. Bureau of Labor Statistics reported that based on their criteria, inflation was definitely still rising, albeit at a slower rate compared to the previous month. This indicates that the Federal Reserve’s hawkish efforts to curb inflation have so far been successful.

Jim Wycoff, an analyst at Kitco News, stated that despite the continued drop, Bitcoin bulls have managed to preserve a short-term technical advantage despite the alpha coin failing to maintain its recent gains.

“Bitcoin-U.S. dollar prices are down in early U.S. trading on Friday, as a result of a usual negative adjustment late in the week after reaching a five-week high on Wednesday,” Wycoff said.

Prices, he continued, remain in an “uptrend on the daily chart, and Bulls retain a modest overall near-term technical edge.”

The foundations of Bitcoin’s economy and market continue to be robust, despite the price of BTC experiencing one dramatic decline after another, with each newsworthy blow to the industry’s major players.