With a 40% decline in value in just two months, Bitcoin is currently four times its lowest price ever.
In two months, Bitcoin’s value has plummeted by nearly 40%, the steepest drop in nearly four years.
According to CoinDesk, it has now fallen for seven days in a row, the longest losing streak since last August. A mere two months ago, the price of bitcoin hit an all-time high of $68,000. Experts, on the other hand, warn that if bitcoin drops below $4000, things could get worse. Bitcoin is currently trading above $41,000, according to the most recent price data.
It was the longest losing streak since August 2018 for the cryptocurrency, according to CoinDesk, which noted the decline in price over the last week. Even though bitcoin has only been above$ for two months, experts now warn that an even steeper selloff could be set off if the currency falls below$. As of this writing, bitcoin was trading at a value of around $.
While all-time price highs are typically followed by a significant correction, the extent and inflexibility of the rearmost losses could eventually signal an end to the 2020/21 bull run and the possibility of the cryptocurrency hitting six numbers this time.
As the year 2021 draws to a close, digital asset broker GlobalBlock’s Marcus Sotiriou argues that the dollar’s “critical position of support” for bitcoin remains intact. After falling to $ in September of that year, bitcoin’s price shot back up to over $1,000 in October. Indeed, despite the weak response so far, he told The Independent that he expects a short-term rise in the stock’s value because of the commerce with such a significant position and that colorful factors indicate a relief rally shortly.
In addition, the Crypto Fear and Greed Index analyses online hunt trends, social media, and exchange data to gauge overall demand sentiment. Popular indicators currently show “extreme fear,” the lowest reading since crypto demand bottomed in July of last year.
The demand As a result of a decline in the global stock market, as well as an anticipated rise in interest rates by the US Federal Reserve, investors have begun to move their money out of risky investments. The price of bitcoin is likely to have fallen because of a crackdown on bitcoin mining operations in Kazakhstan, which is only second to the United States in terms of product. When China imposed a ban on Bitcoin mining, the price of the virtual currency plummeted for a while before rebounding to new all-time highs.
There was a lack of demand in the market because of the current economic climate. This year’s stock market decline and the expected rise in interest rates by the Federal Reserve have prompted investors to withdraw money from riskier assets. Cryptocurrency price decline may be linked to Kazakhstan’s crackdown on bitcoin mining operations. Kazakhstan is the world’s second-largest Bitcoin-producing country. There has been a dramatic drop in the price of Bitcoin since China banned mining of the cryptocurrency last year, but it has since rebounded.