Bitcoin crashes as stocks end the first half of the year lower

Stock markets and crypto markets fell on Thursday, which marked the final day of the second quarter of 2022. Stock markets have had their worst first half of the year in decades, while crypto markets have suffered huge losses since the beginning of the year. Cryptocurrency prices have been following stock market trends and the pressure on stocks has been transferred to cryptos.

Bitcoin crashed on Thursday, plummeting below the $20,000 key level and dropping below the $19,200 level support, reaching its lowest price since November 2020. If Bitcoin price declines, support may be found at the psychological level of $15,000, while resistance may be found near $23,000 and $32,300. 

Ethereum's price also plummeted on Thursday and is currently testing the support at the psychological level of $1000. This represents its lowest price since January 2021. If the Ethereum price continues to decline, it may encounter support at the psychological level of $500, while resistance may be encountered at $2,000 and higher up at $2.170.

A steep cryptocurrency selloff was triggered in the past few weeks, as bearish tendencies have prevailed in crypto markets. The crypto industry has been under pressure since the beginning of the year and the results are becoming apparent, with mounting layoffs in crypto firms and huge losses in trading volumes. Crypto hedge fund Three Arrows Capital was added to the list of companies in the industry that have crashed recently, as it fell into liquidation.

An increasing number of major Central Banks, such as the Fed and the BOE, are moving towards a tighter fiscal policy to tame soaring inflation rates. Stalling economic growth combined with fiscal tightening gives rise to fears of recession, putting pressure on cryptocurrencies.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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