Bitcoin and Ether ended Thursday in the red, but Ether is up more than 100% since mid-June.
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Bitcoin on Friday fell to its lowest level in more than three weeks, falling below $22,000 amid a sudden crypto selloff in early European trade.
Bitcoin briefly plunged from $22,738 to below $21[ads1],500 at 2:30 a.m. ET, according to CoinDesk data, before recovering slightly to just under $22,000 over a 10-minute period.
It comes shortly after the world’s largest digital coin breached the $25,000 level for the first time since June following a rally in US stocks.
Ether fell from $1,808 to $1,728 at the same time before staging a subdued rebound. At 3:05 a.m. ET, it was at $1,733, a level it hasn’t traded at since Aug. 10.
A specific reason for a drop at the time, which also saw Binance Coin, Cardano and Solana fall, was not immediately clear.
“US stock markets have retreated since Wednesday’s release of the July Fed meeting minutes, the most important factor being that the Fed is unlikely to be done with rate hikes until inflation is tamed across the board, with no guidance on future rate hikes either,” Simon said. Peters, crypto market analyst at eToro, to CNBC.
“With the tight correlation between US stocks and crypto in recent months, I suspect this has filtered through to the crypto markets, which is why we are seeing the sell-off. The trend may also have been fueled by the liquidation of long positions in bitcoin perpetual futures markets. . “
Citing Coinglass data, Peters said today had been the biggest liquidation of long futures positions since June 18, also the date bitcoin hit its lowest price of the year around $17,500.
Bitcoin and ether ended Thursday in the red, but ether is up more than 100% since mid-June as investors prepare for a massive upgrade in the ethereum network.