Bitcoin sinks towards six-month low as it reached $39,000, a level not seen since August 2021 as we are reading more today in our latest Bitcoin news.
Things were looking great for Bitcoin as the week came to an end but the price then came crashing back down. After posting some modest gainst to reach back above $43,000, the price of BTC dropped back below $40,000 and it didn’t stop until it reached $38,592 according to CoinmarketCap which is the lowest point since August 2021. The recent 11% drop is unique to Bitcoin. Ethereum is in the middle of the 8% decline in the past 24 hours while Binance Coin said goodbye to the 10% of the value and Cardano took a 9% loss.
No tokens and coins in the top 20 by market cap posted a weekly gain as most have double-digit losses. The total crypto market cap now stands at $1.83 trillion compared to the $2.93 trillion and in the last day, it is down by more than 7%. Things are getting bad all over with the equities markets having a rough start to the year thanks to the combination of high inflation and the COVID-linked supply shortages as well as the impending interest rate hikes. The Dow Jones Industrial Average was also down by 0.9% trading to put its year-to-date losses at 4.5%.
The tech-heavy NASDAQ is doing much worse. After losing 1.3% on Thursday it is down by 10%. the US stock markets have the advantage of closing this weekend and as crypto enthusiasts say, BTC never sleeps but is taking a break from the January beating. Bitcoin sinks towards the six-month low and it looks like it is going to swing for a while here.
As recently reported, Bitcoin traded in a tight range this past week which provided a relief to the market participants after the volatile start of the year and the crypto was mostly flat over the past 24 hours and up about 3% over the past week compared to the 5% gain in ETH. Some traders and analysts remained careful despite the recent price bounce off $40,000 earlier this week. Many crypto market analysts think the bottom is in for BTC and ETH after their terrible start to the new year. BTC increased by 6% from this time a week ago and ETH is up by 10% since then. It has been the case, however, that the altcoins are doing much better in this new year. Not too long ago, it was rare to see a lot of projects surge while BTC and ETH remain stagnant.
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