Bitcoin dumps to hit six-month lows near $38K
Bitcoin (BTC) has dropped 7.5 percent in the last 12 hours, falling to 6-month lows after falling from $43,328 at 4 pm UTC yesterday to $38,258 at 4 am UTC today.
Bitcoin was trading at $38,761 at the time of publication. The total crypto market has lost around $50 billion as a result of today’s price drop. Since early November 2021, when it peaked at $3 billion, the overall crypto market cap has been steadily declining.
Investors are unsure what triggered the price action because there hasn’t been any major news to blame the drop on. Some referred to macro factors, such as the Nasdaq’s tech stocks entering the “correction area” and several interest rate hikes projected in 2022.
Bitcoin, on the other hand, works in strange ways. It might also be the news that Bitcoin bull Raoul Pal has supposedly sold all of his Bitcoin and is down to one…
The present pattern “has a few similarities with the pricing behavior of late September 2021,” according to the Rekt Capital Twitter feed. Between September and October of that year, Bitcoin fell many times, from around $52,000 to around $41,300. By early November, the price had risen to $69,000.
Bears “require Bitcoin under $41,000 to collect $132 million in gains,” according to the InvesetAnswers account, which has over 85,000 followers.
BTC isn’t the only cryptocurrency that has taken a hit today. In the last 12 hours, Ether (ETH), Binance Coin (BNB), Solana (SOL), Cardano (ADA), and Ripple (XRP) have all witnessed strong corrections ranging from -6.3 percent to -10 percent.
Among the top ten coins by market capitalization, ADA saw the worst overall losses, falling 10% to $1.21. SundaeSwap’s botched launch today didn’t appear to improve matters.
In a recent Forbes piece, Forbes contributor Billy Bambrough said that recent Federal Reserve Bank announcements to decrease its balance sheet and hike interest rates had alarmed investors.