Bitcoin's continued collapse and furnace of fire for the crypto periphery
Bitcoin was down 5.7% on Tuesday, ending the day at around $22K. The decline picked up on Wednesday morning, taking another 3.3% off the price to $21K, declining for the eighth consecutive day and losing 30% in seven days. Ethereum lost 8.1% in 24 hours and 38% in a week. Leading altcoins in the top ten are losing between 2% (Polkadot) and 9.6% (Dogecoin).
Total cryptocurrency market capitalisation, according to CoinMarketCap, sank 6.4% overnight to $898bn. The Cryptocurrency Fear and Greed Index was down 1 point by Wednesday, to 7, which last was in March 2020.
Concerns around a sharp tightening of monetary policy are weighing on financial markets and are trickling down into cryptocurrencies through their influence on large institutional investors. It is not surprising that Bitcoin and Ether are dragging the entire cryptocurrency market down in such an environment.
According to CoinShares, institutional investors withdrew $102 million from cryptocurrencies last week amid expectations of a tightening of monetary policy by the US Federal Reserve. The US regulator’s two-day meeting results will be announced todays.
BitMEX founder Arthur Hayes fears that the market has not yet hit rock bottom, and we could see a massive sell-off in cryptocurrencies if bitcoin falls below $20,000. Galaxy Digital head Mike Novogratz is convinced that bitcoin is close to the “bottom” and will hold above $20,000.
We believe Bitcoin may be close to its bottom, but it could take months until the next rally. During those months, the entire crypto industry will probably go through a furnace of fire, as we saw with Terra (Luna), and is now happening with Celsius. Stablecoins continue to be tested, and USDD being below parity with USD for the third day tells us that history with USDT (stable tied to Luna) could repeat itself several times.
Top Cryptocurrencies with Price Predictions
| # | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
| 1 |  BTC |
Bitcoin predictions | 93.2% | 3 | $26 539.58 | 0.22% | -1.21% | $514 773 771 706 |  |
|
|---|---|---|---|---|---|---|---|---|---|---|
| 2 |  ETH |
Ethereum predictions | 92.4% | 1 | $1 847.56 | -0.16% | -1.16% | $222 133 564 682 |  |
|
| 3 |  USDT |
Tether predictions | 94.4% | 1 | $1.000062 | 0% | 0% | $83 306 602 583 |  |
|
| 4 |  BNB |
Binance Coin predictions | 91.6% | 11 | $264.19 | 1.25% | -13.34% | $41 175 498 687 |  |
|
| 5 |  USDC |
USD Coin predictions | 91.2% | 1 | $0.999985 | 0% | 0.01% | $28 437 654 968 |  |
|
| 6 |  XRP |
XRP predictions | 73.2% | 56 | $0.523669 | 1.11% | 3.13% | $27 223 990 249 |  |
|
| 7 |  ADA |
Cardano predictions | 88.8% | 7 | $0.322679 | -0.39% | -11.70% | $11 261 859 319 |  |
|
| 8 |  STETH |
Lido stETH predictions | 92% | 1 | $2 941.39 | -0.40% | -3.32% | $10 258 752 564 |  |
|
| 9 |  DOGE |
Dogecoin predictions | 88.8% | 8 | $0.068079 | 0.53% | -5.19% | $9 509 676 495 |  |
|
| 10 |  WTRX |
Wrapped TRON predictions | 73.6% | 51 | $0.077543 | 0.40% | 3.13% | $7 884 249 276 |  |
|
| 11 |  SOL |
Solana predictions | 89.6% | 16 | $18.82 | -0.96% | -8.96% | $7 494 116 882 |  |
|
| 12 |  MATIC |
Polygon predictions | 85.6% | 16 | $0.779218 | 0.92% | -12.65% | $7 238 518 403 |  |
|
| 13 |  TRX |
TRON predictions | 75.2% | 49 | $0.077670 | 0.49% | 3.35% | $7 001 289 051 |  |
|
| 14 |  LTC |
Litecoin predictions | 78.4% | 38 | $88.53 | -0.30% | -6.71% | $6 471 691 326 |  |
|
| 15 |  DOT |
Polkadot predictions | 90% | 6 | $5.03 | -0.34% | -3.75% | $5 995 257 653 |  |
