Bitcoin price dropped to the level of $ 38 thousand for the first time since August 2020, while the 24-hour loss rate exceeded 7 percent. Besides Bitcoin, other cryptocurrencies also fell. Bitcoin continues to lose value. So why is Bitcoin falling? Here are the details..
The decline in Bitcoin, the most popular in the crypto money world, continues at full speed. Cryptocurrency Bitcoin (BTC) fell to the level of 35 thousand dollars in 24 hours. On the other hand, the total value of the cryptocurrency market has also dropped by over $500 billion. Bitcoin slumped below the $40,000 level on Friday, January 21. While Bitcoin, which gained momentum on the downside, regressed to the $ 35,000 band, the total value of the crypto money market lost $ 500 billion. With the last drop, Bitcoin was pulled to the 35 thousand dollar band and lost about 48% of its value.
With the upward trend it caught in the second half of 2021, Bitcoin, which saw its historical peak at the level of 69 thousand dollars on November 10, entered a downward trend after this level was seen. First of all, struggling to hold on to the $ 60,000 band, Bitcoin could not hold on to this psychological band. Then, seeing below $55,000, it technically entered a bear market in early December.
BITCOIN PRICE INSTANT 22 JANUARY 2022
Bitcoin plunged sharply on Friday after a drop in tech stocks in the US. With this decline, Bitcoin also saw below $39,500, which is an important support level and where the fall rally started. Bitcoin’s instant price is $33,950 as of 13:35 p.m., after falling from $43k to $38,200 following the decline in risk appetite in the markets and the decline in technology shares.
WHY IS CRYPTO MONEY BITCOIN FALLING?
Experts focused on the 3 main factors behind the declines in the market.
- Monetary Policies of the US Federal Reserve
- Correlation Between Stock Markets and Cryptos
- “Ban” Request by the Central Bank of Russia
Expectations regarding the new interest rates to be announced by the US Federal Reserve (Fed) are among the most important factors behind the sharp depreciation in Bitcoin.
Bitcoin’s increasing correlation with Nasdaq shares and the decline in technology shares were effective in the decline in the crypto money markets. While the Nasdaq opened the day higher and suddenly turned into an intraday loss, Netflix’s balance sheet came in worse than expected, increasing its losses in the futures markets.
The Central Bank of Russia has proposed banning the mining and circulation of cryptocurrencies in a report. The report emphasized that cryptocurrencies limit Russia’s monetary policy dominance and as a result should keep the policy rate high. While it was stated in the report that cryptocurrencies are used in terrorist financing and other illegal operations, it was stated that cryptocurrency mining poses a risk to energy consumption and Russia’s environmental plans.