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 lower for all the cryptocurrencies, as macro signs may indicate calamity for the industry in the immediate future. BTC had dropped 7.5 percent in the last 12 hours, hitting lows in six months of 43,328 USD on Thursday and $38,258 at UTC 4 a.m. on next day. 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. In 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 methods.
The present pattern “has several similar things with the pricing behaviour in 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. In November, 2021, the price had risen to 69,000 USD.
BTC was not being the just only cryptocurrency to experience a drop on Friday. In the last 12 hours, ETH, BNB, SOL, ADA, as well as many coins have already witnessed strong corrections ranging from -6.3 percent to -10 percent.
Among some of the best 10 coins by market cap, ADA saw the most significant overall declines, falling 10 percent to 1.21 USD. 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 by the USFR that this would increase interest rates, according to Forbes contributor Billy Bambrough, who wrote an article on Friday.