Bloodbath on Crypto: Bitcoin towards $25,000, Ethereum drops below $1,400

The fall in Bitcoin that began on Friday against the US CPI once again above expectations then took on the appearance of a real bloodbath on the entire cryptocurrency market.

While it was moving above $30,000 on Friday in the early afternoon, BTC/USD bottomed out towards $25,700 for now, which is a new annual low for 2022. Recall that Bitcoin had not sunk this low since December 2020.

At the time of writing, the cryptocurrency is showing a 24-hour decline of 9% and a week-long decline of 16.4%.

In question, a wave of generalized risk aversion, while US inflation figures raise fears that the Fed, which meets this week, will raise its rates by 0.75% instead of the consensus estimate of 0.5%.

Adding to the prospect of the Fed hiking rates will also highlight concerns about the covid-19 outbreak, with new restrictive measures put in place in Beijing, in the face of what the municipal government has said. described as an “explosive epidemic”.

Note that risk aversion is also visible in early trading in US index futures, with the Dow Jones down 1.14% after -2.73% on Friday, while the S&P 500 lost 1.53%, after -2.91%. Friday.

It is also important to note that other major cryptocurrencies are falling more than Bitcoin, with Ethereum in particular, currently at $1360, down 10% over 24 hours and more than 27% over a week, and Solana is falling in similar proportions.

Important thresholds for Bitcoin in the short term

As for the next support likely to stop the fall of Bitcoin, potential support is found at around $22,500, but the first key support cannot be spotted before the major psychological threshold of $20,000.

On the upside, we would need to see a return above $30,000 for the downside pressure to be challenged on the daily chart.