As the whole crypto market cap falls below $2 trillion, the sell-off intensifies

As the gloomy feeling grows, it appears that crypto investors will have no relief. The cryptocurrency market as a whole is down another 3.5 percent today, falling below $2 trillion for the first time since September 2021.

Bitcoin has lost 3% of its value, sliding below the critical support level of $42,500. As a result, it’s highly likely that BTC will test its next support level of $40,000. If BTC falls below this level, we’ll be looking at $37,500.

“Is $42,500 going to hold as support for #bitcoin?”
“Or are we going to head down to test lower supports at 40k and 37.5K?” pic.twitter.com/tF6yXnyKv8 — Lark Davis (@TheCryptoLark) January 6, 2022

Then, The Bitcoin fear and greed index, on the other hand, drops to its lowest level since July 2021. So, This indicates that the market is extremely fearful, and it could be a good time to buy the dips.

Many cryptocurrency specialists have claimed that the current market sell-off is comparable to the one that occurred in the summer of 2021. However, for this to be confirmed, BTC must demonstrate a rebound from present levels, recapturing the $45K-$50K region.

“If we want to claim that the current #Bitcoin trend is a tempered version of the summer lull,”
“then we need to see some type of bounce soon.”
“The bounce does not necessarily have to be spectacular,”
” just something to get us back to the prior range (>45k but <$50k).” pic.twitter.com/CmAvp8u536 — Benjamin Cowen (@intocryptoverse) January 7, 2022

In Kazakhstan, on the other hand, widespread protests have resulted in internet outages across the country. This is huge, especially considering Kazakhstan generates 15% of the total hashrate. What if, after the internet is restored, the miners in this area start selling their BTC? Bitcoin skeptics like Peter Schiff are already predicting a price drop to $15,000 in the near future.

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