A week full of nasty surprises fuels wide collapse

A higher than expected U.S. CPI caused an abrupt stop to the flat market, leading BTC to plunge alongside U.S. equities, exposing new contagion-related vulnerabilities in the market.

Bitcoin reached lows of $20,800 and has since seen a slight recovery. Nevertheless, BTC is very near its 2017 cycle peak of $19,900. Bitcoin has never before traded below previous market cycle peaks. Such an event could pose a structural shift in bitcoin with complex implications on the market and investor sentiment related to bitcoin.

While bitcoin has faced strong headwinds in the last week, Ether has weathered an even heavier storm, seeing a 31% loss over the last seven days, leading ETH to trade below its 2018 peak. The ETH sell-off is exacerbated by the potential insolvency of Celsius.

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