As crypto market bleeds, experts and charts warn worse still to come

Amid all the market turmoil, Mohnish Pabrai, a value investor and disciple of investment legend Warren Buffett took a dig at cryptocurrencies.

Despite the market bloodbath, he warned that the worst was still on its way for cryptocurrencies. In his interview with CNBC, he told crypto investors that the value of their digital asset holdings would "erode to zero over time".

Ethereum fell hard, too. It recorded a 19 percent drop from $1,682.21 to $1,317.22 over the weekend. Its market cap had nosedived from $203.75 billion to $163.57 billion at the time of writing.

Overall, the global market capitalisation of cryptocurrencies, which stood at $1.19 trillion at the start of the weekend, has fallen to $924.3 billion.

The crypto Fear and Greed Index stands at 11, indicating extreme levels of fear among investors.

Bitcoin has been showing a highly bearish trend on the price charts over the last week. A total of seven continuous bearish candlesticks have been observed on the charts indicating that the cryptocurrency may fall further from where it is now.

Source: Trading View

Based on the recent chart patterns, renowned crypto analyst, Altcoin Sherpa, took to Twitter to share his price prediction for the coming days.

“I keep thinking that we’re going to get a relief pump up to mid high 30ks but I’m not even sure we get that anymore. One reason why 2018 sucked was because of the way it slow bled down; this is feeling similar. This area is the last stop before 20k,” his tweet read.

The crypto market is continuously falling amid the rising inflation in the US, which has touched fresh highs in four decades. Coinglass data shows that $515.61 million worth of liquidations has happened in the last 24 hours, of which $210.29 million in Bitcoin alone.

Following closely are Ethereum liquidations at $157.24 million in the same time frame. A total of 180,580 traders liquidated their crypto assets in that time, with the largest single liquidation amounting to $4 million.

“The recent inflation numbers (consumer price index) seen in the US has had a negative effect on most markets. Most investors will keenly look at the US Federal Open Market Committee meeting slated for June 14 and 15. An interest hike by the Fed is already priced in; however, most investors worry that unless inflation numbers start dropping soon, the Fed will likely have to tighten reigns at a faster pace than anticipated,” said Darshan Bathija, CEO and Co-Founder of crypto exchange Vauld.