Investing.com – After hesitating for a few hours against the key psychological threshold of $25,000, Bitcoin finally broke this threshold shortly after the opening of European stock exchanges, which also showed a sharp drop.
The has so far bottomed at $24,074, and the last potential support before the key psychological $20,000 level is the 200-week moving average, currently at $22,383.
Bitcoin thus shows a drop of more than 10% since yesterday and more than 20% over one week at the time of writing this article.
Ethereum, the second most important cryptocurrency on the market, is falling even more sharply. Currently at $1220, in fact shows a plunge of 13.4% since yesterday and more than 32% over one week.
As is the case with Bitcoin, the next credible potential support is the 200 week moving average, at $1191, below which the major psychological threshold of $1000 could be targeted.
Finally, with regard to the reasons for the plunge displayed by cryptocurrencies over the weekend and which is accentuated on Monday, there is generalized risk aversion in the face of expectations of rate hikes by central banks which have once again was reinforced by last Friday’s higher-than-expected US CPI.
The Covid epidemic in China, still out of control according to the latest official reports, particularly in Beijing, also contributes to risk aversion.
Finally, more specifically with regard to cryptocurrencies, it should be noted that Celsius Network announced this morning to pause withdrawals on its platform, in what could constitute a new crypto scandal eroding investor confidence in this market.