Bitcoin Price Plummets Below $40,000 As Crypto Market Tallies $440 Million In Liquidations

Bitcoin is down 15% in the past 24 hours, dropping below $40,000 for the first time since mid-March. Meanwhile, Ethereum is down 14%, falling below the $3,000 level for the first time since March 22.

BTC is trading at $39,783 at the time of writing, while Ether (ETH) is down to $2978.54, according to Coingecko data.

Investors are weighing the prospects of higher interest rates, hyperinflation, and disruption to global trade as a result of the Russian attack on Ukraine, among other factors.

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Bitcoin drops to a monthly low

Faced with the threat of an interest rate hike by the US Federal Reserve, bitcoin, along with stocks, is dropping to its lowest monthly level. As a result, liquidations worth hundreds of millions of dollars took place.

Market experts believe that central bank balance sheet cuts are putting downward pressure on stocks and risky assets, with Bitcoin potentially losing its appeal.

filbfilb, co-founder of Decentrader, agreed with these severe headwinds, noting that the Fed’s action will have an impact on bitcoin’s price direction for “months to come.”

Less exposure to speculative assets

Investors appear to be reducing their exposure to speculative assets, such as stocks and cryptocurrencies, in response to concerns about inflation and slowing economic development.

In addition, the 10-year Treasury yield surged to a three-year high of 2.77% on Tuesday, lowering the current value of high-priced technology stocks.

Bitcoin, which has been generally associated with the pricing of other cryptocurrencies, has recently become more correlated with stock prices.

BTC total market cap at $765.42 billion on the weekend chart | Source:

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In the past month, the crypto-asset’s correlation with the S&P 500 index has reached 0.50, with -1 indicating that they are moving in complete opposition to each other and 1 indicating that they are moving in perfect synchronization.

According to Arcane Research data, it was the highest rate since October 2020.

Nydig, an asset manager focused on Bitcoin, noted in a note to investors:

“Bitcoin investors remain concerned about higher interest rates and the potential for tighter monetary conditions.”

Looming Cryptocurrency Collapse

On Sunday, BitMEX founder Arthur Hayes warned of a “crypto massacre to come” and predicted that Bitcoin and Ether would continue to fall much further.

The investment billionaire-turned-crypto magnate has predicted that bitcoin and ether will “decline long before the Fed acts” and reverses its tightening policies.

Hayes expects the two leading cryptocurrencies to touch the $30,000 and $2,500 levels by the end of June.

Within 24 hours, Coinglass reported that nearly $440 million had been liquidated across the broader crypto market. This amounts to more than 140,000 trades, one of which resulted in a loss of $10 million in a single trade.

Featured image from Medium, chart from

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