Bitcoin fell to its lowest level in nearly a month as the optimism that pervaded global markets after Thursday’s Federal Reserve meeting quickly faded.
On Thursday, the sellers came back in full force, sending stocks and cryptocurrencies lower. Despite short-term price movements, risk aversion among market participants has been a recurring trend this year.
Bitcoin price dropped below the $38,500 support level after failing to break the $40,000 resistance level. The cryptocurrency has lost 8% in the past 24 hours and is now consolidating around $36,500.
In the past seven days, BTC has also fallen by 8%. This was also one of the worst drops in cryptocurrency this year. The coin is now nearly 10% above its January 2022 low – a far cry from the $66,000 it hit in November last year.
dragged the stock market
On April 5, it opened at $46,614, but since then, between a small and minor recovery, it has fallen to Friday’s closing price of $36,230.
Bitcoin is the most volatile cryptocurrency, and market watchers say these types of declines are usual given that the cryptocurrency market increasingly follows the movements of stock market prices.
According to statistics from CoinMarketCap, the trading volume of the largest cryptocurrency in 24 hours is $35,046,532,955. Additionally, the Bitcoin Dominance Index is down 0.3% to nearly 42%.
BTC total market cap at $757 billion on the daily chart | Source: TradingView.com
Other cryptocurrencies fall as well
Likewise, the value of the majority of large coins has fallen dramatically. Ether fell up to 7.1%. Avalanche and Solana, who were among the biggest gainers after the US central bank hike on Thursday, fell to 10% and 7.2%, respectively.
According to Idol Patel, CEO and Co-Founder of Mudrex, there is a possibility that BTC will be below the current level.
“Bitcoin selling volume in 24 hours increased slightly. Bitcoin support level rose to $32,000. Similar downtrend may continue for several days.
High interest rates are the biggest risk for both cryptocurrency and stock traders. The Fed has already raised interest rates twice this year, and is expected to do so again to counter hyperinflation.
The end of bitcoin’s golden days?
Meanwhile, as the cryptocurrency market continues to be volatile, Bitcoin is expected to rally despite the worst economic and financial conditions.
As the bitcoin price continues to decline, some investors are increasingly suspicious of these predictions and shifting their focus to other investment opportunities, or perhaps other cryptocurrencies.
Understanding what will happen is difficult due to the many variables affecting Bitcoin’s performance and many cryptocurrency investors are still optimistic that they can return to the levels they enjoyed during its glory days.
Featured image from Pexels, chart from TradingView.com