According to Bloomberg, Bitcoin recently dropped to 6%, keeping it briefly below the 40,000 mark ($ 39,774) – the worst one-year start for cryptocurrency since 2012. That’s 40% less than the 20 69,000 peak in November 2021 just a few months ago. As of Monday afternoon, Bitcoin was worth about $ 41,320.
Fiona Cincotta, a senior financial market analyst at Citi Index, told Bloomberg that cryptocurrency “has made a start in 2022. There’s a lot going on. We know Bitcoin is volatile but we’re seeing some really big moves for Bitcoin as well.” J. Hatfield, CEO of Infrastructure Capital Advisors, made a bearish prediction that the Federal Reserve would reduce “liquidity injections”. Epidemic stimulus, “Bitcoin could end 2022 below $ 20,000.” (Bloomberg) Reported separately It expects the Fed to raise interest rates at least four times throughout 2022 to prevent further speculation. Bond purchase program By March 2022.)
Many cryptocurrency investors See 40,000 The potential price level of Bitcoin is important as a somewhat arbitrary marker. Falling significantly below this amount for a length will, to put it simply, confuse many bitcoin holders.
Coindesk Monday report That bitcoin seems to be approaching a situation called “Death Cross” when the 50-day moving average moves below its 200-day equivalent. Investors often take this as a sign that Short-term momentum The one in the back Investment is slowing, indicating that the bull market is about to break. Coindesk noted that the Death Cross is an unreliable indicator, however, and since October 2019 Bitcoin has faced it at least three times. In each case, The value of cryptocurrency has risen rapidly. This situation is known as a bear trap, which effectively means that if someone hedges on the cryptocurrency the price goes down further.
CoinDesk writes that Kraken’s analysis, a cryptocurrency exchange, rather helplessly indicates previous Bitcoin death crosses “either stopped selling in the coming days or an ongoing macro downtrend that confirmed a bear market.” Forbes quoted Several analysts The general consensus is that the Bitcoin situation will continue to worsen in the coming weeks.
Another cause of the crash appeared to be unrest in Kazakhstan, where security forces have in recent days carried out brutal crackdowns on rising fuel costs and angry protesters against the government of President Kasim-Jomart Tokayev. More than 160 deaths and 8,000 arrests Was reported After the soldiers Fired Tokayev instructed security forces in a public speech with live ammunition in Almaty Shot without warning. Attempts to stifle dissent have involved a massive Internet blackout, with mining facilities in Kazakhstan cut off from the global network. Coindesk Reported separately Which is about one-fifth Bitcoin’s global hashtag (Bitcoin’s blockchain fuel energy-huge amount of burning processing energy) Located there; Mining activities were severely disrupted from 5 to 6 January. Only on Monday did miners return online.
As always, there are clear signs that cryptocurrencies remain loyal, justified The inevitable boom of Bitcoin and the pre-recession of the commodity cycle are all over the place. Has been through Numerous crashes before, The original Bitcoin fans have learned to be a bit dull during the recession, hoping that the speculative frenzy will return in a few months. According to Bloomberg, Genesis Global Trading Market Insights head Noel Acheson suggests that short-term investors have sunk due to cash out. He told the network that long-term investors were “buying dips” by referring to buying cryptocurrency as a premium rate.
The so-called “meme coin” refers to a class of tokens, such as the Dodge coin, whose value is based almost entirely on speculation involving news cycles and social media interests. Has also been upset. Dogecoin, which peaked at 74 cents in May, sat at around 14 cents early Monday afternoon, when a replica called Shiva Inu Mudra was in similarly catastrophic losses from its own peak. For those who have spent thousands of dollars on dog-themed jokes, the outlook is not generally bad, Bloomberg Reporting Another meme coin called Baby Dose has effectively doubled since the beginning of the year (of course, it could and could crash at any time).