Bitcoin Crashes Below $40K – Brace for a Correction

Bitcoin dropped below the $40K level on Tuesday, following the crash in the global financial markets. The cryptocurrency market also followed the global stock markets downwards, reaching new monthly lows on Tuesday, amid the growing uncertainties. While Bitcoin suffered declines of several thousand-dollars in a day, the altcoins were hit even harder, with massive double-digit price dumps. Neither was the cryptocurrency market spared, since it was affected by the fears prompted by the potential collapse of Evergrande. Bitcoin, a leading cryptocurrency in the market, declined from $48K to below $40K, and recorded a massive sell-off. ETH/USD also fell, and reached below the 3K level.

Cramer’s Remarks Trigger a Bearish Bias

Cramer believes that the debt issues of the real estate giant will continue to harm the digital asset market in the near future, and crypto investors should take some profits while they can, to avoid turning it into a loss. These comments prompted people to take measures to avoid further massive losses, and as a result, people started selling their holdings while they could still book profits from them, which in turn caused the price of Bitcoin to drop.

Meanwhile, the largest investment bank in Latin America, a 38-year old Brazilian financial institution by the name of BTG Pactual, has announced the launch of its crypto trading and custody platform. According to the press release, the company, which has an annual revenue of over $1.8 billion, has successfully rolled out a digital currency platform called Mynt. This platform will offer the clients of direct banks exposure to Bitcoin and established altcoins like Ether. The Brazilian company claims that it was the first lender in the region to launch a dedicated cryptocurrency trading platform that will support other blockchain-based assets later. This news kept the losses in BTC/USD limited for the day.