Investing.com – Panic has resurfaced in the cryptocurrency market, which has suffered many setbacks and setbacks recently, following the crash of the FTX platform and its aftermath, with Bitcoin falling below the levels again of 17,000.
After a temporary recovery in the digital currency market, during which Bitcoin managed to rally to as high as $17,000, feelings of fear and panic have returned to the cryptocurrency market amid growing fears about the Fed’s next move.
Markets re-entered a wave of declines after composite data from Markit’s Purchasing Managers’ Index, factory orders, preceded by strong jobs data last Friday.
These data bolster the Fed’s ability to proceed with the monetary policy-tightening scenario, as it has come to confirm the US economy’s exit from the specter of recession, which drives risk appetite away from risky assets like stocks and currencies digital.
$40 billion lost
In the past few hours, digital currencies have lost more than $40 billion of their market value, dropping to levels close to $850 billion during these trading moments on Tuesday.
The market value of digital currencies rallied sharply during yesterday’s trading after approaching $875 billion levels, and a little while ago digital currencies fell sharply near $830 billion levels.
Fear and panic
Data from the Fear and Greed Index, which measures the psychology of traders in the market, revealed the resurgence of negative sentiments among traders, after a temporary improvement in recent days.
According to data from the Crypto Fear & Greed Index, the market has entered a new wave of panic, at record highs of 25 points, after climbing to levels close to 40 points as an average of last week’s trading.
During these moments, Bitcoin fell below $17,000 levels to levels close to $16,920,000, a drop of about 2%, as it recorded a price high at $17.3,000.
So far Bitcoin is up 3% in one week, while down 20% in one trading month, and 15% in sixty days, while down more than 64% year-to-date, with a market value of 327 billions of dollars.
Bitcoin had managed to beat shocking expectations regarding the expansion of the bearish wave, to clear $17,000 levels during recent sessions, amid expectations to continue rising towards the $18,000 resistance.
Standard Chartered predicted in a note over the weekend a drop of around 70% to $5,000 in 2023., while many market experts expected Bitcoin to fall between levels between $10,000 and $5,000.
Instead, the losses of the second digital currency widened, falling by more than 3%, falling to levels of 1.25 thousand dollars, while still rising by 3.5% in a week, with a market value of 154 billion pounds .
Binance Coin fell to $288, down 3%, and dropped 2% to $0.38, while down more than 6% to $0.1.
It is down 4% to $0.31 levels, Polygon Matic is down 3% to $0.9 levels and down 4% to $5.4 levels, and Litecoin is down 5%.