Bitcoin news

Bitcoin loses 10% in 24 hours: new lows in sight

Bitcoin ha lost nearly 10% of its value in the past 24 hours, dipping below $ 30.000 for the first time since July 2021. Tuesday's decline in BTC leads the Bitcoin price less than half of its all-time high of $ 2017 in November 69.000. From one year to the next, Bitcoin prices fell by 34%.

Traditional financial markets and cryptocurrency they both saw a Sell-off like result of the Federal Reserve's aggressive monetary tightening and recession fears. The last time the largest cryptocurrency by market value fell below the $ 30.000 level was on July 20, 2021, when it hit $ 29.301 before bouncing back.

That said, therefore, it does not escape that the correlation between cryptocurrencies and share prices is increasingly evident.

But what will happen to BTC now?

Bitcoin could "maybe get a mini-bounce close to $ 35.000, but unless we break the trend line at around $ 37.000, I'm forecasting for $ 29.000 in the next few weeks or a week“Says cryptocurrency analyst Wendy O in a new social media video.

Numerous cryptocurrency investors have suggested that Bitcoin is gold's version of the digital age, a potential flight-to-safety investment hedging inflation. The pricing behavior of cryptocurrencies, however, implies that the market does not see these highly volatile assets as reliable repositories of value during times of economic instability.

Similar to the stock market, the cryptocurrency market has been under pressure for weeks with investors facing sustained escalating inflation, the ongoing flurry of economic events stemming increasingly from Russia's invasion of Ukraine, and more monetary policy. rigid US by the Fed.

"Bitcoin's long-term fundamentals are intact, but a recovery to all-time highs will take a long time. Bitcoin will begin to stabilize when the Wall Street carnage ends, and many investors are still panic-selling right now.“Said Edward Moya, Oanda's senior market analyst.

The central bank raised interest rates by 50 basis points last week and pledged to reduce its holdings. Instead of buying bonds to stimulate the economy, it will dispose of them to fight inflation.

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Roberto Rais

A great cryptocurrency expert and a long time collaborator. He actively follows several specialized Blogs in the cryptocurrency sector as Editors

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