Bitcoin lost its support in the last few hours and fell below $38,560, hitting its lowest level since August 3, 2021
Bitcoin lost its support in the last few hours and fell below $38,560 to its lowest level since August 3, 2021, which led to the entire market dropping by 7% in the past 24 hours, losing the total cryptocurrency market cap of about $250 billion and dropping to less than 2 trillion dollars.
These losses come even though the currency has been performing relatively well over the past few days, as it rose above the $43,000 level during yesterday’s trading, to test the major support area around $44,000, but on Friday everything changed for the worse, the price collapsed from Above $43,000 to under $38,000, a six-month low.
Now, I managed to recover some losses and traded just under $39,000, but it's still down 9% in the past 7 days, and altcoins have also failed to perform better (at least most of them).
Ethereum lost $3,000 level, fell by about 12.6 % in the past 24 hours and about 13 % in the past seven days, Binance coin is down by 11.4%, Solana is down by 17% and Ripple is down by about 11%, the market is in chaos and sentiment is negative Extremely.
Reasons behind the decline in the price of Bitcoin
Proposed Russian ban
The sell-off comes on the heels of the Russian Central Bank's proposal to impose a ban on cryptocurrency on January 20, with the bank citing threats to its monetary policy as reasons behind the proposed ban, which could lead to a ban on cryptocurrency mining in addition to a ban on ownership.
Russia is one of the capitals Crypto In the world, it takes an average hash rate of 1,123 per month according to the Cambridge Bitcoin Index for electricity consumption, thus Russia is the third largest cryptocurrency mining country in the world and is also one of the countries with the largest cryptocurrency ownership, with 17 million cryptocurrency owners Russians make up 11.91% population, Russia has the second highest percentage of cryptocurrency owners after Ukraine, confidence in the crypto market has plummeted following the recent sell-off, and the market is showing that it remains cautious.
Whole sale and high correlation
The S&P 500 closed yesterday's trading session 1.1% down, dropping below 4,500 points, marking the biggest decline since Oct 18, 2021, Nasdaq down 1.3% in the same time frame and Dow Jones losing around 0.89%.
The derivatives market also took a hit, with Nasdaq 100 futures tumbling following a disappointing earnings report from Netflix, with the broadcast giant's shares plunging more than 19 % during Thursday's extended trading session once earnings data was released, showing a slowdown in its subscriber growth.
It appears that the market has been flashing bearish signals over the past few weeks and that the broader indicators are finally collapsing, in the meantime, the price of Bitcoin is closely correlated with the price of traditional indicators, and the recent crash of Bitcoin is no exception.
On the other hand, some of the big companies like Facebook, Instagram, Google and Intel have made several different statements, all boosting their participation in the industry, however, this has more to do with the non-fungible tokens that seem to be thriving.