The crypto market has seen another major dip and the global crypto market cap has decreased by 7.68% to about $1.83 trillion over the last day. On average the plunge has resulted in an average of about $150B of investors’ capital.
The majority of coins had nosedived by an average of 8% and the downward momentum seems to be gaining traction every minute.
According to CoinMarketCap, Bitcoin (BTC), the world’s most popular cryptocurrency, had dropped by 8.05%, at the time of writing and it is currently trading at $38,663.05.
It is the first time Bitcoin has slid below $40,000 since August 2021 and all eyes are on the support at $37,500.
If the bear trend continues, investors should be prepared for BTC to fall below $30,000.
Peter Schiff, a Bitcoin critic commented in his Twitter handle that the current Bitcoin price pattern projects a move below $30,000
#Bitcoin has finally broken the neckline of a head-and-shoulders top. The scary part for the longs is that the pattern projects a move below $30,000. Once that level is breached Bitcoin will have completed a massive double top. From there a crash below $10,000 is highly likely.
— Peter Schiff (@PeterSchiff) January 21, 2022
Ethereum and altcoins
Ethereum (ETH), the biggest Bitcoin rival, has also seen a drastic fall.
According to CoinMarketCap, ETH had dropped by 9.02% to trade at $2,858.54 at the time of writing.
Besides Ethereum, there has been a 7-15% drop in the price of almost all of the top 100 cryptocurrencies where the majority are altcoins.
For instance, for the first time, Polygon (MATIC) has dropped below $2. It is currently trading at $1.89 after an 8.75% today.
Upcoming FOMC meeting
It is believed that the efforts by the Reserve bank to curb inflation have started impacting cryptocurrencies and equities.
The momentum of the markets both crypto and equities could be decided after the upcoming FOMC meeting scheduled for next week.