2023-06-15 03:22:32 ET
Bitcoin
(BTC/USD) price came under intense selling pressure as the fear and greed index moved to the fear area after the latest Fed decision. It managed to drop below the important support level at $25,000, where it had struggled to move below this month. Other altcoins like Solana, Jasmy, Litecoin, and Sui retreated to their lowest levels in months.
Bitcoin fear and greed index slips
Bitcoin price has come under pressure in the past few weeks as the recent rally faded. In all, the coin has crashed by more than $6,000 from its highest point this year. As a result, the total market cap of all cryptocurrencies dropped from the year-to-date high of $1.3 trillion to about $1 trillion.
The Bitcoin fear and greed index has moved to the fear level of 41, signaling that investors are getting concerned about the industry. In contrast, the CNN Money fear and greed index jumped to the extreme greed area of 81.
There are two main reasons why Bitcoin price has lost its key support. First, there are concerns about the Federal Reserve. While the bank decided to leave interest rates unchanged, the bank signaled that it will hike them by another 0.50% this year. This explains why the Dow Jones and the Russell 2000 indices dropped by more than 1%.
Watch here: https://www.youtube.com/embed/OyQ-blnkrOE?feature=oembed
Second, Bitcoin price plunged amid the rising regulatory concerns in the industry. As we wrote
here
,
the Securities and Exchange Commission sued Binance and Coinbase last week. The two lawsuits were important because they hit the two biggest exchanges in the world.
Many investors have exited their crypto positions. For example,
Bitcoin supply in exchanges
has dropped to the lowest level in five years while outflows from exchanges has increased.
Altcoins are more at risk
The ongoing Bitcoin plunge will be worse for altcoins. For one, the SEC believes that many altcoins like Cardano and MATIC are securities. As such, we will likely see more exchanges delist many tokens. Some, like Robinhood and Kraken have already started delisting these altcoins.
This explains why many altcoins have done worse than Bitcoin. Jasmy price plunged to a low of $0.0031, the lowest level since January. Similarly,
Solana
price dropped to $13.22, about 45% below the highest level this year. This price is the lowest it has been since January.
Cardano price tumbled to a low $0.2295, meaning it has plunged by almost 50% from the highest point this year. Other coins like MATIC, Near Protocol, Algorand,
EOS
, IOTA, and Tezos have also erased most of the gains made earlier this year.
The post
Bitcoin price breaks key support: Solana, Jasmy, EOS, IOTA outlook darkens
appeared first on
Invezz
.
