The bitcoin (BTC) and cryptocurrency markets continued in a declining trend this Monday, June 13, on the prospect of rising inflation and an imminent interest rate hike by the Fed. The price of bitcoin fell on Monday at $22,800, its lowest level since December 2020.
The first cryptocurrency by market capitalization thus registers a decline of 67% from its historical maximum of November 2021. Historically, the percentages of decline in the price of bitcoin from its previous all-time highs had been following a downward trend, until Monday’s fall.
With the level reached in the last few hours, the 55% drop in July 2021 was overcome, when the price of BTC went from 64,698 to 28,900. The price of bitcoin at the time of writing this article is USD 23,300, which shows a deterioration of 14% in the last 24 hours.
The declining trend was also reflected in the rest of the cryptocurrency market and in the prices of major stocks. The cryptocurrency market capitalization fell 50.66% since the beginning of the year and stood at USD 963,768 million, in figures from CoinMarketCap. It is the first time that the market value of cryptocurrencies has fallen below a trillion dollars since February 1, 2021. The Nasdaq index, for its part, has fallen 2.4% in the last 24 hours.
Bitcoin RSI indicator at all time low
The bitcoin relative strength indicator (RSI) is also at minimum values, as highlighted it this Monday the PlanB analyst on Twitter. The RSI compares the magnitude of the days in profit with the days in loss, in order to determine if the asset is oversold or overbought. An asset is overbought if it has gone up a lot in a short time and it is considered oversold if it has gone down a lot in a short time, as might be the case right now.
According to the PlanB chart, the current value of RSI is the lowest in the history of bitcoin, 43.7. Two previous lows of the bitcoin RSI in 2015 and 2019 marked the bottom of the bitcoin price in a bearish time.
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The market capitalization of bitcoin decreased by 11% in the last 24 hours to stand at $450 billion. In conjunction with the sharp decline in the value of bitcoin, there has been a spike in the dominance of that cryptocurrency, which has increased from 40% to 47% so far this year.
This means that despite the market decline, bitcoin has strengthened against altcoins. Facing bitcoin’s 50.7% market cap loss in 2022, altcoins are down 60% in figures from CoinMarketCap.
Cryptocurrency liquidations border on USD 1 billion
As bitcoin’s decline deepens, cryptocurrency liquidations increased more than 100% this Sunday and at the time of writing this article they total USD 972 million, the highest value since last May 12.
Coinglass This Sunday, the 12th, it registered some USD 538 million of liquidations of long positions and USD 309 million of liquidations of short positions.
In a review of the most important bitcoin corrections, published by CriptoNoticias in November 2021, the last one recorded had been that of July 2021, which, as mentioned, was 55%.
But before that, at the beginning of 2015 and the end of 2018, there had been corrections that pushed the price of bitcoin back 86% and 85% respectively. December 2013 saw bitcoin’s steepest correction of 93%, so the current BTC price movement is not an unusual phenomenon.