Bitcoin Recovers From Seven Month Low Of $33K
January 25 2022 - 5:30PM
NEWSBTC
Bitcoin broke out in a feeding frenzy during the January 24
afternoon, raking up over $37K after falling to its lowest point in
the same morning. It’s almost as if they’re mirroring each other’s
moves. Bitcoin shot back up above $36,000 Tuesday morning after a
day of heavy trading that saw the price drop below 33K for the
first time since July 2021. Monday afternoon, it crossed $37,000
was staying pretty stable around 35k with some small increases here
and there. The crypto world has seen a lot of volatility over
the last few years, but it’s still surprising when prices drop 50%
or more. It has happened three times since 2018 alone! And this
latest sell-off was no exception; from April through July 2019,
Bitcoin fell 52%. Cryptocurrencies have experienced major selloffs
across the board, with cryptocurrency-related stocks being no
exception. Analysts say that one primary driver of this trend is
former Federal Reserve chairwoman Janet Yellen’s plan for stimulus
removal and higher interest rate policies, which has negatively
impacted many tech-related companies in recent months. For example,
the Nasdaq has fallen 12% since January 1 alone. “The Fed is
currently buffeting the crypto market,” says Martha Reyes, head of
research at Bequant. “This industry has been proliferating, and
it’s not surprising that investors are taking risks with their
capital.” The decreased interest in crypto by retail investors is a
sign that this market may have reached its peak. Glassnode, a
blockchain data research firm, suggested there were two main
reasons for the decline: regulatory uncertainty and low performance
last year – both factors which will probably continue into 2022 as
well.” Bitcoin vs New Digital Assets With the rise of NFTs, people
are now more interested in investing their money into these new
digital assets rather than Bitcoin. So it’s no wonder that people
are starting to search for information on these non-fungible
tokens. Google searches have shown a steady increase over last
year, which is likely why we see more interest from investors
worldwide as they seek out trends before others do.
Cryptocurrencies are down across the board, but some coins have
fallen further than others. For example, ether is down 50% from its
last high point, while Solana and Shiba Inu cryptocurrencies based
on memes experienced even steeper losses with 64% and 74%,
respectively. Related Reading | Despite Decline In Bitcoin Price,
Market Remains Greedy Since November, the crypto market has lost
about 44% of its value, with $1.65 trillion pulled down by
widespread selling in both Bitcoin and other coins across the
board. Joel Kruger, a currency strategist, said, “It makes sense to
me for broad crypto to get hit hard. It’s all about innovation,
which should correlate with risky assets.” Crypto inevitably gets
hit hard when innovation increases and risky assets follow suit.
Sure enough, ether has followed this trend as well; it’s almost
like an index for all these projects on ethereum – including NFTs,
games, decentralized finance initiatives, or smart contracts – to
see how they stack up against each other.” The moves come as a
surprise to some investors and analysts. Ryan Volden, an analyst
from JPMorgan, predicted that Bitcoin could reach $146,000 in the
future. Traders To keep an eye on BTC $30K Level Traders are
focusing on $30,000 as a significant level for multiple reasons.
First, that number represents the low point of last year’s bear
market, and it also opened up close to where Bitcoin was trading in
2021 when we first saw prices fall during that period – which means
there is some hope left. It’s not just your investments that are at
risk. For example, suppose Bitcoin falls below $5K. In that case,
it will put Bitcoin prices into their 2020 levels and turn every
investor who bought Bitcoins in recent months, as well as all those
risking money on crypto markets, into losers. With Wall Street
panicking and a sell-off of Bitcoins reaching new heights, it’s
essential to keep an eye on the $30k level. If this becomes
unstable, more people may end up selling their coins, leading the
market back down again. Featured image from Pixabay, chart from
TradingView.com
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