Bitcoin Collapses By Most In Nearly A Month – Its Golden Days Are Over?
May 06 2022 - 08:06AM
NEWSBTC
Bitcoin fell to its lowest level in nearly a month as the optimism
that had pervaded global markets following the Federal Reserve’s
meeting on Thursday quickly vanished. On Thursday, sellers returned
in full force, driving equities and cryptocurrencies down. Despite
short-term price movements, the risk-off mood among market
participants has been a recurrent trend this year. Bitcoin price
fell below the $38,500 support level after failing to cross the
$40,000 resistance level. The cryptocurrency has lost 8% in the
last 24 hours and is now consolidating about $36,500. Suggested
Reading | Bitcoin Seen Dropping To $32K – But Not This Month – As
Analyst Sees It Hitting $48K In the past seven days, BTC has also
decreased by 8%. This was also one of the worst declines for
cryptocurrencies this year. The token is now approximately 10%
above its January 2022 low – a far cry from the $66,000 it
registered in November last year. Dragged By The Stock Market On
April 5, its value opened at $46,614, but since then, between small
and slight recoveries, it has declined to Friday’s closing price of
$36,230. Bitcoin is the most volatile cryptocurrency, and market
observers say these types of declines are usual given that the
crypto market increasingly follows the stock market’s price
movements. According to CoinMarketCap statistics, the largest
cryptocurrency has a 24-hour trading volume of $35,046,532,955. In
addition, Bitcoin’s dominance index decreased by 0.3% to nearly
42%. BTC total market cap at $757 billion on the daily chart |
Source: TradingView.com Other Cryptos Fall As Well Similarly, the
value of the majority of large coins decreased substantially. Ether
fell as high as 7.1%. Avalanche and Solana, which were among the
biggest gainers following Thursday’s rate hike by the US central
bank, plummeted as high as 10% and 7.2 percent, respectively.
According to Edul Patel, Chief Executive Officer and Co-Founder of
Mudrex, there is a possibility that BTC would fall below the
present level. “The 24-hour selling volume of Bitcoin increased
slightly. Bitcoin’s support level has risen to $32,000. A similar
downward trend could continue for several days,” he said. Rising
interest rates are the greatest risk for both cryptocurrency and
stock traders. The Federal Reserve has already increased interest
rates twice this year and is expected to do so again to counteract
excessive inflation. End Of The Bitcoin Golden Days? Meanwhile, as
the cryptocurrency market continues to be volatile, Bitcoin is
anticipated to rise despite the worst economic and financial
conditions. As Bitcoin’s price continues to fall, however, some
investors are becoming increasingly dubious of these forecasts and
shifting their focus to other investment opportunities, or perhaps
other cryptocurrencies. Comprehending what comes ahead is difficult
because of the numerous variables influencing Bitcoin’s performance
and many crypto investors are still optimistic it can go back to
levels it enjoyed during its glory days. Suggested Reading |
Bitcoin Struggles To Breach $40,000 Level, Down 4% In Last 24 Hours
Featured image from Pexels, chart from TradingView.com
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