Home Trading Bitcoin Crash Gains Steam as Crypto Market Cap Falls Below $1T

Bitcoin Crash Gains Steam as Crypto Market Cap Falls Below $1T

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The euro declined on Monday as the energy crisis in Europe continued over the weekend. Last week, Russia decided to cut its natural gas shipments to some key European countries like France, Italy, and Germany. It lowered sales to Germany by 60% citing the impact of sanctions. As a result, Germany announced that it will restart its coal plants in a bid to protect its industry. The euro will react to a speech by key European Central Bank (ECB) officials like Christine Lagarde and Philip Lane, the bank’s chief economist. The two are expected to signal that the bank will hike interest rates by 0.25% in its July meeting.

Cryptocurrency prices crashed hard during the weekend as concerns about the industry remained. Bitcoin moved below $20,000 for the first time since 2020. Similarly, Ethereum dropped below $1,000 while the total market cap of all cryptocurrencies declined below $1 trillion. Investors are concerned about the lack of demand for coins. Also, many investors are experiencing margin calls as their holdings slide. For example, Three Arrows, a well-known hedge fund became the latest big firm to implode. At its peak, the fund had over $10 billion in assets.

The price of crude oil remained under pressure as investors continue focusing on important news in the industry. There is uncertainty about the outcome of Biden’s meeting with Saudi’s Salman. It is unclear whether Saudi Arabia will agree to raise production in a bid to stabilize prices. Meanwhile, investors are concerned about Libya’s output. In a statement, the country’s prime minister said that it’s unlikely the country will hold elections this year. Output from Libya has dropped to between 100k and 200k from last year’s high of 1.3 million barrels.

XBRUSD

The XBRUSD pair has dropped sharply in the past few days as concerns in the industry continued. It is trading at 111.46, which is lower than this month’s high of over 123. It has moved below the upper side of the ascending channel shown in white. At the same time, the pair has dropped below the 25-day moving average while the MACD has moved below the neutral point. The Relative Strength Index has dropped below the oversold level. Therefore, the pair will likely have a relief rally today.

EURUSD

The EURUSD pair is trading at 1.0495, which is higher than last Friday’s low of 1.0440. On the four-hour chart, the pair moved above the 25-day moving average while the RSI is above the neutral point at 50. It has moved slightly below the 61.8% Fibonacci retracement level. The pair will likely resume the uptrend as investors wait for the upcoming speech by Lagarde and Lane.

USDJPY

The USDJPY pair continued its bullish trend after the Bank of Japan decided to maintain its dovish tone. It is trading at 134.92, which is slightly below the highest point this year. It has moved slightly above the 25-day moving average while the RSI and momentum have moved upwards. The pair will likely continue rising, with the next key target being at 135.61.

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