Strong decline in Bitcoin: it has fallen to its lowest level in a year and a half

Bitcoin (BTC) on Monday continued its rally of losses until this afternoon the zone of $ 30,000a minimum trading amount for the most well-known cryptocurrency in the past year and a half, and accrues a 55% recoil from its peak in November.

The BTC fell that afternoon to $ 30,339 in New York (eleven%), their biggest daily decline since Jan. 21, while some major cryptocurrencies posted deeper declines such as Ehter (-11%), Solana (-14%), and Avalanch (-18%), among others.

Since January 28, 2021, there have only been seven days in which Bitcoin has traded below $ 31,000: now it’s one of them.

The global flight of risky investments due to rising United States Federal Reserve (FED) interest rates has been particularly difficult for cryptocurrencies, which have lost nearly US $ 750,000 million in market capitalization in the last six weeks (- 35%) and US $ 1.6 billion since November (-55%), when it reached a record capitalization of US $ 3 billion.

Similarly, the major indices have recorded a sharp fall so far in 2021: S&P 500 (-16.6%), Dow Jones (-12.2%) and nasdaq (-30.7%).

“We see collapse of slow motionin part because it’s largely been selling longer than using liquidations, ”Josh Lim, head of derivatives brokerage Genesis Global Trading, told Bloomberg.

For his part, Michael Novogratz, a cryptocurrency investor who heads Galaxy Digital Holdings Ltd., warns that he expects things get worse before upgrading.

“Cryptocurrency trades are likely to be related to the Nasdaq until we achieve a new equilibrium,” Novogratz said.

“We are carefully watching to see how the market fares over the next 24 hours,” Steven Goulden, a senior research analyst at crypto market maker Cumberland DRW, said in an email.

The rise of interest rates makes individual and institutional investors ponder the outlook for the crypto market, according to Edul Patel, CEO of Mudrex, an algorithm-based crypto investment platform.

The more than 30% decline in Bitcoin in 2022 is compared to the more than 10% decline in global bonds and stocks, and a 2.5% increase in gold.

“The downtrend is likely to continue over the next few days,” he said, adding that Bitcoin could test the $ 30,000 level.

With information from Telam

DD