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    Crypto Markets Lost $130 Billion in Only 24 Hours

    Over the last 24 hours, the cryptocurrency market has lost over $130 billion in value as major digital coins have continued their multi-day sell-off.

    According to Coin Metrics, Bitcoin was recently down roughly 4% at $33,755.57, while Ether was down 7% at $2,239.08. Both plunged to their lowest levels since July earlier this morning, and are now approximately 50% off their all-time highs.

    Cryptocurrencies are trending in lockstep with stocks, which have been falling since the start of the year and recently experienced their worst week since March 2020. As the US Federal Reserve tightens its monetary policy and raises interest rates, investors have been dumping risk assets like technology companies.

    “It’s probable that macroeconomic worries, such as the Federal Reserve’s response to inflation rates, have permitted greater de-risking activity in general,” said Juthica Chou, Kraken’s Head of OTC Options Trading. “As players seek to decrease risk, the recent price dip, along with significant volatility, might lead to more selling.”

    In the meanwhile, investors are weighing the potential impact of further regulation on the bitcoin industry. Last week, Russia’s central bank recommended a ban on cryptocurrency use and mining.

    According to Vijay Ayyar, Luno’s vice president of business development and international expansion, bitcoin is expected to test the $30,000-$32,000 level given current market mood. He believes that if the cryptocurrency stays over $30,000 for a week, a base will develop at those levels before the market surges higher. Given the lack of confidence across the board, it may take some time for the market to turn positive, he noted.

    Several other analysts have predicted that the Bitcoin would challenge $30,000 as the next level of support. However, 22V Research analyst John Roque believes bitcoin might fall even worse. He, too, has set a target of $30,000, but pointed out that the typical historical bear market for bitcoin is down 78 percent. Bitcoin is presently trading at a 50% discount to its all-time high.

    Several other analysts have predicted that the Bitcoin would challenge $30,000 as the next level of support. However, 22V Research analyst John Roque believes bitcoin might fall even worse. He, too, has set a target of $30,000, but pointed out that the typical historical bear market for bitcoin is down 78 percent. Bitcoin is presently trading at a 50% discount to its all-time high.

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