After the release of U.S. inflation data, the inventory markets turned pink, and cryptocurrencies took another hit. Bitcoin initially held its ground but took another hit late last night. Altcoins have also taken another hit in the previous two days.
The prices of various cryptocurrencies have dropped to their lowest levels in over 16 months. As a result, the market cap of cryptocurrencies has fallen below $1.2 trillion.
Due to the lack of trading volumes, Bitcoin continued to fall on June 12. According to TradingView and the Cointelegraph Markets Pro, the price of Bitcoin dropped to around $27,150. It has now lost six straight days of losses.
With just hours to go before the weekly close, Bitcoin was in danger of falling into a losing streak, which would have marked the ninth straight week of red candles. The pair needed to gain more than $2,000 from its current price to avoid this. Unfortunately, it failed.
The lack of liquidity during the weekend's out-of-hours trading sessions made it difficult for analysts to predict the market's direction. They also believed that a test of the May lows was in the cards.
According to Michaël van de Poppe, a contributor for the Cointelegraph, Bitcoin failed to maintain its recent price of around $29,300. Poppe noted that if the support area of approximately $28,500 does not hold, the next target would be around $26,000-$24,000.
📈Market Overview#BTC price trades below $28K— CryptoRank Platform (@CryptoRank_io) June 12, 2022
The Top-10 are traded in red zone: $ADA -14.5%, $DOGE -13.8%, $SOL -12.6%.
Market cap: $1.16T (-7.45%) $BTC dominance: 45.06% (+1.66%)
Fear & Greed Index: 14 (Extreme Fear)
Full Report👉https://t.co/9K9DYSC5Fi pic.twitter.com/AjxCnUD4cR
Correlation to stock market
Despite the continued talk of a potential capitulation in the crypto market, many investors focused on the fate of the stock markets. According to Mike McGlone, a commodities analyst at Bloomberg Intelligence, risk assets could already be at their peak.
McGlone noted that if the stock market continues to decline, the entire asset class could experience a crash similar to what happened in 1929 and 1999. He also warned that cryptocurrencies might not see new highs anymore.
During the day, Bitcoin traded near the lows around $27K. It was the closest thing to a mini-capitulation event that happened in May, caused by the collapse of Terra LUNA. The question for many investors was how much of a floor Bitcoin could fall on.
According to a report by Cointelegraph, the range for Bitcoin's bottom would be between $27,000 and $14,000.
Major altcoins dump
This week, Ethereum tried to regain the $1,900 mark, but it failed. The price eventually held around $1,850 after Friday's release of the US Shopper Value Index. At first, it fell to around $1,600, which was already below summer's low. However, on the last day of the week, it managed to find some support, around $1,540, which was a significant boost.
After falling deeper into the red, the price of ETH briefly dropped below the previous low of $1,430. On the current day, it is trading at around $1,470, and it is down 15.5% so far this week. The value of ETH is currently at its lowest point in over a year. It briefly touched on the excessive start of 2018.
Among the major cryptocurrencies, the price of XRP is down 9.1% and is currently trading at around $0.348. Binance coin is also within the pink as it is down 10% and currently trades at around $257.
Solana is currently trading at $32.5, down 11.5% this week. Additionally, Polkadot is down 12.3% and is now at $7.6. Dogecoin is also down 12.6% and is currently trading at $0.066. Cardano also dips significantly, with its value dropping by 9%. Avalanche is one of the most prominent losers. It is down 17.3% in just 24 hours and is currently trading at $18.5.