Bitcoin continues to fall and reached its lowest price since January

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after registering a 10% drop on Thursday (5), moving away from 40 thousand dollars, Bitcoin continues in free fall. With a low of $34,195, reached this Sunday morning (8), this is the lowest Bitcoin price since January of this year. The blood on the digital streets also extends to altcoins, particularly the market darlings, APE and GMT.

The reason for the drop remains the same: the pressure of the Fed’s measures to combat US inflation. The event not only affected cryptocurrencies but also the stock market. Therefore, with trades closed for the weekend, they may trade lower on Monday (9), with Bitcoin serving as a market thermometer.

The good news is that the Bitcoin fear/greed indicator shows “extreme fear” of the market. In other words, investors may be selling very cheaply, because they are not reasoning out of fear, which may be a good buying opportunity.

blood in the streets

In March, the cryptocurrency market returned to the $2 trillion range. However, $2 billion has since disappeared after Bitcoin closed April down 18% and also from the sharp drop in the first week of May.

Not only Bitcoinalternative cryptocurrencies have also followed suit. ApeCoin (APE)for example, is down 41.9% in the last seven days, followed by StepN (GMT) down 25.3%, these two altcoins drew attention for both their price and increasing volume.

Cryptocurrency heat map, most showing a 24-hour decline. Source: Coin360

Ultimately, this drop leaves Bitcoin at prices not seen since January of this year. At the time of writing, 1 BTC is priced at $34,412. Pessimists are already worried that Bitcoin will reach such low levels that it will force MicroStrategy to sell some of its coins.

It’s the Equity Traders’ Fault, Says Binance CEO

In an interview on Saturday, Changpeng Zhao, CEO of Binance, stated that the correlation between Bitcoin and traditional markets It’s the merchants fault. For Zhao, they feel pressured by falling stocks and sell their crypto out of fear.

His speech comes after a user questioned Bitcoin’s role as an asset independent of the traditional system. Going further, Zhao also cited that Bitcoin’s capitalization is still small, which is why the coin suffers such steep declines.

Finally, the Bitcoin Fear and Greed Index entered “extreme fear”, also not seen since January of this year. Therefore, it can be a great opportunity to buy thinking in the long term, after all, this is the moment when others are selling out of fear, without being able to make a rational analysis.

Bitcoin Fear/Greed Index. Source: alternative.me

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