Bitcoin has fallen more than 20% in the past seven days. The market capitalization of close to 20,000 crypto-assets fell below the $1 trillion line, specifically to $958.72 billion.

Bitcoin has fallen more than 20% in the past seven days, having this Tuesday in the early morning hours tumbled below the psychological $22,000 line to $21,932. Meanwhile the "cryptoqueen" eased to $22,764.68, continuing to renew December 2020 lows.

The movement extended to the remaining crypto, with the market capitalization of cryptocurrencies losing 2.77%, below the $1 trillion line, to $958.72 billion.

The cryptocurrency market is tracking the risk market in the fall as investors gauge the impact of central banks' "hawkish" monetary policy.

UBS warns, in a "research" note cited by Bloomberg and the newspaper Negócios, that this move puts the most sought-after cryptocurrency on the market below the average investor cost basis calculated by the investment bank at $23,500. This means that the price has fallen enough for even the so-called "holders" - investors who bet in the long term - are encouraged to sell their tokens.

For James Malcom, head of the department that analyzes crypto at UBS the present is a true "total panic scenario" and the future is open yet pressured by the hawkish monetary policy of the centraus banks. "Capitulation can come in many forms. Likewise, a relief move is also possible. Right now we are in full panic mode, and the expectation for the Fed to become even more 'hawkish' is quite high," describes the expert.

The US central bank meets this Wednesday with investment houses like Goldman Sachs betting that the Fed may raise interest rates by 75 basis points, the likes of which it has not seen since 1994.

Falling below the $20,000 plateau? Still possible

"It looks like there are more falls to come," argues Fiona Cincotta, an analyst at City Index, in an interview with Bloomberg. The expert even argues that "we should be on the lookout for a possible drop below $20,000."

Steve Sosnick, chief strategist at Interactive Brokers LLC, meanwhile, believes that bitcoin could trade in the range between $20,000 and $21,000 as Microstrategy, the largest corporate owner of bitcoin may be forced to sell units of the "cryptoqueen."

"When there is this idea of a possible sale this is a real line," clarifies the strategist. The bitcoin drop may force MicroStrategy to provide additional collateral in relation to a $205 million loan requested in March, as announced by the company in May.

This overwhelming drop prompted the company's own CEO, Michael Saylor, to post a tweet this Monday with the phrase "In Bitcoin We Trust." MicroStrategy shares fell 25% during this Monday's session.