Bitcoin Drops Below $40K for the First Time in Two Weeks, This Time Closer to the $38,000 Support
The crypto market completely collapsed during the morning session, and Dolpegg’s Stablecoin was the only survivor. Data provided by CoinMarketCap shows that bitcoin, which surged around $43,000 on Thursday, fell to a six-month low of $38,560. At press time, the Payoneer cryptocurrency is trading at less than $39,000, down 7.68% in the past 24 hours.
In addition to Bitcoin, Ethereum is also entering the market. In the past 24 hours, the second digital asset by value has fallen to $2,827.7. At press time, the coin was slightly above that figure, trading at $2,880.22, but down 8.34% on the day.
Altcoin red too
The situation is not easy for other major digital currencies, and in most cases the loss is greater than the two major cryptocurrencies. The market has undervalued Binance’s BNB, Cardano’s ADA, and Avalanche’s AVAX by up to two orders of magnitude.
Overall, the market liquidated as much as 11% of capital, fell below $2 trillion for the first time in four months and reached $1.92 trillion, according to CoinGecko. The cryptocurrency “Fear and Greed” indicator also dropped to 19 levels of intense fear, which indicates the current bearish mood. After the market stagnated, more than 180,000 traders witnessed the liquidation of their positions.
Russia’s latest proposal likely caused the sell-off, among other factors
The reason for the drop is unknown, but the Russian Central Bank’s proposal to ban cryptocurrencies in a report released yesterday is believed to have influenced the decline. Regulators have called for the need to ban the use and mining of crypto to protect the country’s financial stability.
However, the global stock market was also hit by the start of the week. This means that there may be a much larger, but still invisible, reason for the regression.
Earlier this month, crypto supporter Mike Novogratz of Galaxy Digital predicted that Bitcoin could drop to $38,000. CNBC After a few days, Bitcoin will be able to maintain this important support caveat Higher bond yields will put more pressure on cryptocurrencies and stocks.
The Federal Reserve said in the minutes of its mid-December meeting released earlier this month that it may change monetary policy to raise interest rates to deal with the inflation tragedy. shown.
This fall does not benefit the already ailing crypto market. The market has seen consistent weekly outflows over the past five weeks, totaling $532 million this week. It takes a lot of work to restore this trend.