By Daniel Shvartsman
Investing.com – plunged below $20,000 in early trading Saturday morning as the continued crypto bear market pushed several top cryptocurrencies past key sentimental or technical levels.
As of 4:00 a.m. ET (800 GMT), Bitcoin was trading just below $19,200, 9% below its price 24 hours earlier. traded just above $1,000, down 9% from the previous day. , , and also fell 8-10%, continuing what has been a nightmarish week and quarter for the sector.
Major stablecoins, in particular, hadn’t moved materially at the start of Saturday’s trading, with the focus on whether it could hold its value and the magnitude of the impact if it didn’t. Tether saw its aggregate value fall below $70 billion this week, one (2838377), as it saw (2837462).
Bitcoin took its biggest hit around 2:45 a.m. ET, dropping more than 4% in 15 minutes. It has fallen more than $10,000, or more than 35%, since last weekend, following a host of crypto sector implosions, from Celsius to Binance to, most recently, Babel Finance.
$20,000 was mentioned as a support key sign of a , and is symbolically significant given Bitcoin (and the sector as a whole) trading at levels last seen in early December 2020, erasing almost all of the bullish rally. They are also currently below the highs of 2017, the previous major Bitcoin bull market. And in an industry where symbolism matters, clearing another major round number so soon after passing $30,000 can resonate, with the same principle applying to $1,000 for Ethereum.
This general range has also been closely watched given concerns about leverage in crypto trading and the possible build-up of margin calls and forced selling. MicroStrategy (NASDAQ:), the tech company run by famed bitcoin bull Michael Saylor, has long been suspected of being at risk of a margin call if Bitcoin falls below $21,000.
With the market having decisively reached this point over the weekend, it seems likely that there will be more twists to this cycle, one way or another.