The cryptocurrency king suffers another crash with a 3.3% drop in just 24 hours. Bitcoin is currently trading at around $38,210, the lowest level so far since March of this year when US President Joe Biden signed an executive order on crypto regulations.
Although the price of BTC rose to $40,800 on Tuesday, it fell briefly after that.
Amazon denies speculation about accepting BTC payments
Amazon’s decline against mass speculation that the retail giant will accept bitcoin payments was the main culprit for the sudden drop. The ether was pushed down as well.
The price of BTC skyrocketed when Amazon announced a cryptocurrency-related job posting. However, two hours later, an Amazon spokesperson denied allegations that bitcoin would be added as a payment method this year.
Bitcoin peaked at around $40,545 as investors rushed their bets with speculation of a downside move. More than $950 million in crypto shorts have been liquidated, the highest since May of this year.
The volatility experienced by Bitcoin and all other cryptocurrencies is referred to as a multi-wave retracement. It peaked around April and is expected to rebound to a maximum of $45,000 before sliding again.
The roller coaster ride of BTC is part of this correction. The cryptocurrency industry suffered a massive decline after hitting a record $65,000 due to bombardment of environmental and regulatory issues.
BTC total market cap at $751.41 billion on the daily chart | Source: TradingView.com
Hectic moves are expected this week for BTC and other coins. In the meantime, investors are looking forward to the next big wave that could take BTC out of its meager $30K-$40K trading range in the past few months.
Where is bitcoin headed?
The risk level is slightly higher this week because the Federal Reserve is due to announce its decision on Wednesday.
What’s more, news of an investigation into alleged bank fraud by Tether executives has put the crypto space on hold.
Bitcoin investors have been grappling with inflation, environmental, political and economic concerns, particularly with the Federal Reserve. The rate of inflation that occurred in March of this year is by far the worst rate of inflation compared to what happened in 1981.
Multiple factors combined have affected the volatility in the stock and cryptocurrency markets.
The current price range is said to be a compromise for Bitcoin as its performance will determine how it turns out in the next few days. Will it be bullish or bearish? The performance of BTC in this range will give people an idea of where it is headed.
Featured image from The Facts Chronicle, chart from TradingView.com