• Bitcoin, Ethereum and altcoin prices have tumbled in a crypto market bloodbath. 
  • Bank of England has flagged the risk of 10% inflation, fueling a bearish sentiment among investors. 
  • Bitcoin witnessed the largest drop in price since April 2022 as investors pulled capital out of the crypto market. 

Bitcoin price has dropped and this has triggered $191 million in futures losses across exchanges. Rampant fear of inflation has pushed Bitcoin and altcoin prices down, hinting at a continuation of the bear market. 

Bitcoin, Ethereum and altcoins continue bleeding with mass liquidation

Crypto-tracked futures were hit by mass liquidation, wiping out $400 million in long positions. The massive losses were incurred as BTC hit a low of $35,700, and Ethereum as well as other altcoins took a steep nosedive. Based on data from Coinglass, BTC futures alone were responsible for $191 million in liquidations. 

The Bank of England increased the base rate from 0.75% to 1% at its meeting on Thursday. Proponents believe the BoE’s warning of 10% inflation and recession, alongside the US Federal Reserve’s increased benchmark interest rate, are the key drivers of the bloodbath. 

In response to the tightening monetary policy of the Federal Reserve and the double-whammy of recession and inflation by the BoE, stock market indices have tumbled. The S&P 500 lost 3.4% as 95% of the companies in the benchmark were in the red. Investors have started pulling capital out of Bitcoin and other risky-based asset classes. 

Vijay Ayyar, Vice President of corporate development at Luno, said:

Overall, global markets have been spooked by growth fears as we can see. The Dow had its worst drop since 2020, and all related risky-based assets followed suit including crypto.

Proponents believe Bitcoin has lost “a key level” when it dropped below $37,500, and it is expected to continue its downward spiral over the next few days. Ayyar believes Bitcoin could test a low of $30,000 soon, and if the price continues to plummet, the asset could hit $25,000. 

@Phoenix_Ash3es, leading on-chain analyst and trader, is bearish on Bitcoin. The analyst argues if Bitcoin fails to close the week above $38,472, there are six consecutive negative weekly candles in a row. A downward spiral like that would be a first in Bitcoin price history. 

BTC price trend

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Coinbase’s new SOL staking program won’t save Solana price from this brutal outlook

Coinbase’s new SOL staking program won’t save Solana price from this brutal outlook

Solana price is lacking bullish momentum, which has led to a huge correction. This pullback comes after an impressive recovery rally seen across the entire crypto space. 

More Solana News

Why short-sellers are moving to trade Ethereum price

Why short-sellers are moving to trade Ethereum price

Ethereum price faced rejection after failed attempts to move past a significantly important resistance barrier. This development has led to ETH reversing the trend and returning to a stable support level, which will now decide the fate of the smart contract token.

More Ethereum News

North Korea's Lazarus Group suspected of hacking another top tier cryptocurrency project

North Korea's Lazarus Group suspected of hacking another top tier cryptocurrency project

Blockchain analytics firm Elliptic has found a strong connection between North Korea’s Lazarus Group and the $100 million crypto hack on Harmony’s Horizon Bridge.

More Cryptocurrencies News

Dogecoin price is primed for a significant movement

Dogecoin price is primed for a significant movement

A brief technical and on-chain analysis on Dogecoin price. Here, FXStreet's analysts evaluate where DOGE could be heading next.

More Dogecoin News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis