The world’s foremost cryptocurrency, Bitcoin, has had an eventful week as it briefly hit the $22,500 benchmark on Friday. The crypto has been having a hard time for the past month, trading below $20,000. Detractors even went so far as to predict a $12,000 drop for the token amid the broader market’s bearish turn. Yet it rallied last week, breaking the $22,000 resistance mark before dropping again. Today, Bitcoin has climbed back and is currently trading around the $20,000 mark.
Meanwhile, as the crypto ecosystem undergoes bearish turns in the throes of inflation, the Celsius price dropped 17%. The CEL token had soared by 13% on Sunday only to dip from a $1.7 high to $1.43 on Monday. At the time of writing, the crypto is holding steady in the $1.70 price range.
Multiple Events Clash With Each Other, Causing Extreme Volatility In Crypto Market
This season is a highly volatile one for the crypto market as several significant events seem to be clashing. On the one hand, there is the Ethereum Merge, a movement from the protocol’s PoW consensus to the energy-efficient PoS. The much-anticipated event has been the subject of much hype and market movements. It will take place this November 15th after multiple postponements due to several hitches in the development process.
Another event analysts expect to affect the crypto market is the CPI release on September 13. Some have said that CPI, more than the Ethereum Merge, would determine the price of crypto in the coming days. These, coupled with the spiking inflation rates, have caused the entire crypto ecosystem to convulse continuously.
The Wider Crypto Market Is Bleeding
For now, the market is bleeding after the weekend gains. Ethereum is down 5%, currently trading at $1,581. As for the native currency of Cardano, it barely cleared $0.4783 after trading at $0.5209 last weekend. DOGE price is down about 7% from its weekend spike. It is currently trading at $0.06067. As for XRP, it has declined sharply from Friday’s $0.3606 gain, dropping to its current $0.3371.
Most Altcoins are down at least 8% amidst the current crypto bear market. It is also possible that Bitcoin will follow if it drops below $20,000. As things stand, there are mixed feelings among investors and traders about the King coin. Some believe it can soar back to $22,000, while others predict it will hit an even lower zero mark. $12,000 is the most popularly quoted as the expected zero mark for Bitcoin.
Featured image from Pixabay and chart from TradingView.com