Bitcoin Recovers From Seven Month Low Of $33K
Bitcoin broke out during the afternoon of January 24, raising more than $37K after dropping to its lowest point the same morning. It’s almost as if they mirror each other’s movements.
Bitcoin shot back above $36,000 on Tuesday morning after a day of heavy trading with the price dropping below 33K for the first time since July 2021. Monday afternoon it passed $37,000 and remained fairly stable around 35k with some small gains here and there.
Bitcoin Price recovered nearly 7% from its seven-week low on January 24, 2022.Source: Tradingview.com
The crypto world has seen a lot of volatility in recent years, but it is still surprising when prices fall by 50% or more. It’s happened three times since 2018 alone! And this latest sale was no exception; from April to July 2019, Bitcoin fell by 52%.
Cryptocurrencies have experienced major sell-offs across the board, with cryptocurrency-related stocks being no exception. Analysts say one of the main drivers of this trend is the former chairman of the Federal Reserve Janet Yellen’s plan for the removal of stimulus measures and a higher interest rate policy, which has had a negative impact on many technology-related companies in recent months. For example, the Nasdaq has fallen 12% since January 1 alone.
“The Fed is currently working on the crypto market,” said Martha Reyes, head of research at Bequant. “This industry is on the rise and it’s not surprising that investors are taking risks with their capital.”
The diminished interest in crypto by retail investors is a sign that this market may have reached its peak. glass nodea blockchain data research firm, suggested there were two main reasons for the decline: regulatory uncertainty and low performance last year — both factors likely to persist into 2022.”
Bitcoin vs New Digital Assets
With the rise of NFTs, people are now more interested in investing their money in this new digital assets instead of Bitcoin. So it’s no wonder that people are starting to look for information about these non-fungible tokens. Google searches are showing a steady increase from last year, which is probably why we’re seeing more interest from investors around the world looking for trends before others.
Cryptocurrencies have fallen across the board, but some coins have fallen further than others. For example, Ether is down 50% from its last high, while meme-based Solana and Shiba Inu cryptocurrencies took even bigger losses at 64% and 74% respectively.
Related literature | Despite Bitcoin Price Drop, Market Remains Greedy
Since November, the crypto market has lost about 44% of its value, dropping $1.65 trillion due to widespread sales in both Bitcoin and other coins across the board.
Joel Kruger, a currency strategist, said:
“It makes sense to me that broad crypto is hit hard. It’s all about innovation, which has to correlate with risky assets.”
Crypto is inevitably hit hard as innovation ramps up and risky assets follow. Sure enough, ether has followed this trend as well; it’s almost an index to all these projects on ethereum – including NFTs, games, decentralized financing initiatives or smart contracts – to see how they compare.”
The moves come as a surprise to some investors and analysts. Ryan Volden, a JPMorgan analyst, predicted that Bitcoin could reach $146,000 in the future.
Traders To Watch BTC $30K Level
Traders are targeting $30,000 as a significant level for several reasons. First, that number represents the low of last year’s bear market, and it also opened close to where Bitcoin traded in 2021 when we first saw prices fall during that period – meaning there is still hope.
Not only your investments are at risk. For example, suppose Bitcoin falls below $5K. In that case, it will bring Bitcoin prices into their 2020 levels and turn any investor who has bought Bitcoins in recent months, as well as all those who risk money in crypto markets, into losers.
With Wall Street panicking and a Bitcoin selloff reaching new highs, it is essential to keep an eye on the $30k level. If this becomes unstable, more people will be able to sell their coins, causing the market to fall again.
Featured image from Pixabay, chart from TradingView.com