Bitcoin (BTC) plummeted overnight, with the major cryptocurrency falling to levels as low as $19,621, according to data from CoinMarketCap.

The past week has been bullish for cryptocurrencies as most have ended up in green territory. BTC had also managed to stay above its $20,000 support after weeks of dithering above and below that price.

Bitcoin, however, this morning lost 3.72% in the past 24 hours and is trading tightly near its seven-day low of $19,341.23, indicates CoinMarketCap.

The market capitalization of the largest cryptocurrency, Bitcoin, has fallen from a whopping $1.27 trillion in November 2021 to less than $377 billion today.

As for Ethereum (ETH), the second-largest cryptocurrency with a market capitalization of $129 billion, also slid to around $1,068, down 6.7% in the past 24 hours.

This marks a decline of 78.14% from its all-time high of $4,891.70.

Amid the bearish price action, more than 62,000 traders were liquidated in the crypto market, data from CoinGlass. Over $180 million was liquidated during the same period.

Ethereum leads the liquidations with almost $62 million liquidated in the last 24 hours, followed by Bitcoin with $59.95 million and Solana with $3.42 million over the same period.

Bitcoin and Ethereum face a multitude of risks

The main drivers of the bearish action are plummeting crypto trading volumes, selling pressure from miners, and high expectation for another Federal Reserve rate hike.

Total cryptocurrency trading volume has fallen to just over $50 billion, an 86% drop from its all-time high of nearly $367.6 billion recorded on May 20, 2021, data shows. analytics of CoinMarketCap.

The long-term downward movement in Bitcoin price has also forced many miners to offload their holdings to cover operational costs.

“With the loss of the $30,000 price level, miners and long-term (LTH) holders are under pressure,” reads a recent report by glass knot. Long-term holders refer to Bitcoin holders who do not sell their holdings for months or even years.

Currently, long-term Bitcoin holders face losses of up to 33%.

Finally, cryptocurrencies tipped lower after the 75 basis point hike announced by the US Fed last month. The Fed meets again on July 26, with many waiting another increase of 75 basis points.

This meeting could signal even more pain for all risky assets.