Bitcoin Dumps to Hit Six-Month Lows near $38K
Bengaluru, January 21, 2022: As the week came to a close, things were looking (little) better for Bitcoin. Then perhaps the price plummeted once more. According to several experts, Bitcoin is heading the road down for all cryptocurrencies, as macro signs may indicate calamity for the industry in the immediate future. Bitcoin (BTC) has dropped 7.5 percent in the last 12 hours, hitting six-month lows of $43,328 at 4 p.m. UTC on Thursday and $38,258 at 4 a.m. UTC on Friday. Bitcoin was trading around $38,761 just at the date of publishing. As per the CoinMarketCap, it didn’t seem to stop until it hit $38,592, its lowest value since August 2 of the last year.
What Exactly is Bitcoin?
Bitcoin is a brand-new type of currency. It functions similarly to gold as a store of value as well as a digital asset. It isn’t gold, and it isn’t regulated by the government. It is a form of digital currency. A type of money that is created, traded, as well as exchanged entirely online. Bitcoin is a store of value as well as a mechanism of storing, transferring, and managing value. Bitcoin simplifies the concept of value as well as its application.
Bitcoin was invented as a mechanism for anyone to store as well as transfer value all around the world, at low or no cost, anywhere at any time and from any location, without using banking institutions or fiat currencies. Bitcoin’s network is composed of users. It’s a system that’s run by the people.
The cryptocurrency market has lost around $50 billion as a result of the price drop. Since early November 2021, when it peaked at $3 trillion, the overall cryptocurrency market capitalisation has been steadily declining.
Investors are unsure what triggered the price movements because there hasn’t been any major news to blame the drop on. Some cited macro factors, such as the Nasdaq’s tech stocks reaching “correction area” as well as multiple interest rate increases projected in 2022.
Bitcoin, on the other hand, works in strange ways. It could just as well be the announcement that Bitcoin bull Raoul Pal had reportedly sold all of his Bitcoin and so now owns only 1 BTC.
The present pattern “has several similarities with the pricing behaviour of late September 2021,” as per the Rekt Capital Twitter feed. Between September and October of that year, Bitcoin fell many times, from around $52,000 to around $41,300. By early November, the price had risen to $69,000.
Bears “require Bitcoin under $41,000 to collect $132 million in gains,” according to the InvesetAnswers Twitter handle, which seems to have over 85,000 followers.
BTC was not the only cryptocurrency to experience a drop on Friday. In the last 12 hours, Ether (ETH), Binance Coin (BNB), Solana (SOL), Cardano (ADA), as well as XRP have all witnessed strong corrections ranging from -6.3 percent to -10 percent.
Among some of the top ten coins by market cap, ADA saw the most significant overall declines, falling 10% to $1.21. SundaeSwap’s botched launch on Friday didn’t seem to improve matters.
Twitter users expressed a range of emotions in response to the latest Bitcoin price drop below $40,000. While everyone has reacted to the spill with varied degrees of passion, Crypto Twitter personality Will Clemente has remained unaffected. “Just drove for two hours, checked my phone, and BTC is under 40K – Ok, cool,” Clemente wrote on Twitter.
Investors have indeed been startled by recent comments from the United States Federal Reserve that this would cut its balance sheet as well as increase interest rates, according to Forbes contributor Billy Bambrough, who wrote an article on Friday.
