Meanwhile, the US market closed after an eventful trading day. We take a look at the live Bitcoin price and the prices of the top 25 crypto currencies that crashed significantly. Naturally, we ask why and what next. Spending your crypto at Gucci might be an option.
We begin, of course, with the live Bitcoin price and the prices of the top 25 crypto.
Live Bitcoin price crashes along with top 25 crypto
At the time of writing, the live Bitcoin price is quoting EUR 34,617.40 ($36,507.81). This is 8.37% lower than during our crypto update yesterday.
The prices of the top 25 crypto are also crashing. We see apart from some stable coins only red numbers on the digital price boards. The biggest loss of the day is with -11,66% for Near Protocol (NEAR). On the overview with live crypto prices on the site of Tradeincrypto.com we see that more crypto coins record their losses today in double digits.
Why are Bitcoin and other crypto prices falling so fast?
There is nothing left of the optimism about the prudent interest rate measures announced by the Fed yesterday, as we can see from the prices. This is because analysts have been scrutinizing Fed policy and are sounding the alarm.
On the one hand, they fear that the Fed’s cautious course will ensure that inflation remains too high. On the other hand, there is a chance that an accelerated increase in interest rates will lead to recession. It would also require the Fed to revise its position from yesterday, which is not good for macroeconomic confidence.
In addition, there are three crypto-specific conditions that exacerbate crypto’s price decline:
Despite the optimism, the Bitcoin price did not manage to stay above $40,000, which meant that this resistance was not broken and thus a decline came;
In addition, the correlation with (tech) stocks plays tricks on the crypto. As a result, the crypto market was sucked into the price declines of, among others, the S&P 500 (-3.4%), Dow Jones (3%) and Nasdaq (4.8%).
As a result, crypto collateral for long positions leveraged to Bitcoin became worth too little to many investors, causing their positions to be executed. This happened fast, for example at the deepest point of the crash the crypto exchanges executed over $100 million in value in one hour. This caused the crypto snowball to roll at full speed.
What can we expect next for crypto?
Because Bitcoin could not break through $40,000, the largest crypto currency remains in a consolidation pattern. With that, one therefore expects a horizontal price trend in the short term. This is expected to be followed by the market unless bullish factors for specific crypto currencies start to apply.
Incidentally, the ranges remain narrow and thus there is a reasonable chance of a future breakout. The chances of this becoming bullish are still high according to analysts. Only at a daily closing of $34,500 or lower is a bearish scenario real according to them. If this happens, the damage can be severe. This is because they expect Bitcoin to reach a target price below $31,000 (a 15% loss compared to the current price). The effect of the crypto snowball and thus the effect on the other crypto is obvious.
Paying with crypto at Gucci
With all the commotion about investments, we would almost forget that one of the purposes of crypto is as a means of payment. Gucci reminds us of this. The design group has announced that it will also accept payments in crypto.
It will be possible to pay with 10 different crypto (Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Wrapped Bitcoin (WBTC), Litecoin (LTC), Shiba Inu (SHIB), Dogecoin (DOGE) and as yet unknown stable coins linked to the dollar).
Starting at the end of this month, they will be piloting crypto at the Wooster Street stores in New York, Rodeo Drive in Los Angeles, Miami Design District, Phipps Plaza in Atlanta and The Shops at Crystals in Las Vegas. Once this trial is completed and the results have been processed, it will be rolled out to all Gucci stores in North America. If and when Gucci will offer crypto payments in Europe is not (yet) known.
So all in all, there is again plenty to follow and catch up on, as for example during our Bitcoin lunch tomorrow.
In the meantime, don’t forget to read our Liberation Special on investing in World War II!
Want to stay up to date on the latest stock price developments?
You can always follow the developments yourself with our WANT crypto analyses or the background articles and previews on the crypto market and Bitcoin. Of course, you can also follow the live quotes 24 hours a day if you want to stay informed in real time. Are you interested in other investments besides crypto? Then our weekly Monday morning price forecast might be a reading tip. “Please note: We never give financial advice, so our contributions can’t be interpreted that way either. Always do your own research and decide on rational grounds if, when, what and how much you want to invest in.”