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The battle for $20,000 in Bitcoin keeps the crypto market on edge.

Bitcoin struggled to stay above the $20,000 barrier, continuing a period of high volatility that included massive weekend swings.

As of 7:32 a.m. in London, the largest cryptocurrency had fallen as much as 4.8 percent and was trading at $19,914. Ether fell 7.8% at one point, but remained over $1,000. Solana, Cardano, and Dogecoin are among the altcoins that have seen a drop in value.

Bitcoin dropped about 15% on Saturday before surging back beyond $20,000 with a surge of similar size on Sunday. The pattern of swings suggests that investor mood is still quite shaky as the Federal Reserve and other central banks ramp up interest rate hikes, draining liquidity from markets.

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The T3 Bitcoin Volatility Index, which measures the token’s predicted 30-day volatility, has risen to levels last seen in mid-May, when the TerraUSD stablecoin’s collapse rocked markets.

“The crypto market has been harmed by a toxic mix of bad news cycles and increasing interest rates, and we should expect more volatility in the coming weeks,” Feroze Medora, director of APAC trading at Cameron and Tyler Winklevoss’ Gemini crypto platform, wrote in a note on Monday.

After Bitcoin fell below $20,000 for the first time since late 2020 last week, the focus has shifted to a wave of liquidations that threatens to exacerbate the crypto bear market. According to Coinglass data, there were $879 million worth of liquidations over the weekend.

‘Looking for Liquidations’ is a term used to describe the process of looking for liquidations.

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According to Chiente Hsu, chief executive officer of decentralised financial platform ALEX, current trading patterns in Bitcoin and Ether show that some significant crypto holders are “chasing liquidations to profit from forcing other participants out.”

The heavy demand on DeFi applications adds to the uncertainty. When pandemic-era stimulus fueled a record-breaking crypto boom, their attractiveness as a source of high payouts skyrocketed.

They are now being compelled to take unusual precautions in order to avoid a chain reaction of liquidations. Celsius Network Ltd., the embattled crypto lending platform, said on Monday that it needs additional time to reestablish its liquidity and operations after freezing deposits in June.

On Twitter, Arthur Hayes, co-founder of crypto exchange BitMEX, stated, “Expect more pockets of forced selling of Bitcoin and Ether as the market figures out who is swimming naked.”

“For those skilled knife-catchers, there may yet be other opportunities to buy coin from individuals who must smash every bid no matter the price,” he said.

Read more: From Bitcoin, Ethereum, Cardano, and Solana to XRP, DOT, and AVAX, prominent crypto values have dropped by up to 10%

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