The cryptocurrency market is slain. Bitcoin falls below $27,000

The cryptocurrency market is slain. Bitcoin falls below $27,000 ...

Bitcoin''s decline that began last week has continued into this week, as well. The cryptocurrency is now down more than 57% from its all-time high in November last year, and this is affecting coin exchanges, according to CNN.

After the Federal Reserve tightened its monetary policy, Bitcoin and other cryptocurrencies crashed. Despite the fact that there were no sudden declines in value, cryptocurrencies remained unchanged, which has refused to stop there. Investors are selling-off cryptocurrency coins, hoping to store their assets in relatively safe conditions.

Where will Bitcoin hold its level?

According to CNBC, experts believed Bitcoin, the largest crypto coin by market cap, must keep the $30,000 secure. However, the cryptocurrency fell substantially below this mark to $26,846, according to CNBC.

Although it may be held at this level, it''s also doubtful that the Bureau of Labor Statistics stated that consumer prices for April were at 8.3 percent. Investors are spooking, who are also withdrawing funds from their accounts. However, volatile assets like cryptocurrency are seeing the most incidence.

Bitcoin was down 11 percent, BNB was down 26 percent, and SOL was down 37 percent of its value in a single day, according to CoinDesk. Terra''s LUNA was in for a rude shock as it fell 96% and dropped from the top 10 crypto coins list to 81st.

Liquidations and bankruptcy

cryptocurrencies lost another 16 percent of their global market cap, but they also caused liquidations in the futures market. As Investopedia claims, liquidation is triggered automatically when an asset value falls below a set threshold and is sold immediately to avoid further losses.

According to CoinDesk, Ethereum had slashed 22%, and traders lost $333 million in liquidations. Bitcoin futures fell $330 million. More volatility is expected over the next few days.

Slumping cryptocurrencies are also damaging crypto brokerages hard; Coinbase reported a drop after a 27 percent drop in revenues for its first quarter. However, the high-profile company that went public last year was valued at $100 billion. However, its valuation has been reduced to $15 billion, despite concerns of bankruptcy.

After a company wrote to the Securities and Exchange Commission (SEC) that cryptocurrency assets held on behalf of customers would be included in litigation if the company would fail.

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