bitcoin 2021 had a great start. It broke records by seeing higher levels in all of January, February, March and April than the previous one. However, this good start could not be made in 2022.
Global cryptocurrency market volume dropped more than 7% today, falling below $2 trillion to $1.82 trillion, according to Coinmarketcap data.
Bitcoin, on the other hand, is trading at $ 38,700, down 7.76%. In our previous news, we predicted that the most important support level for Bitcoin is $ 40,500, and if this level is broken, it can be reduced to $ 38,000.
With this latest development bitcoinhas lost more than 20% in value since the beginning of this year.
The leading altcoin Ethereum, on the other hand, did not remain indifferent to this sharp decline in Bitcoin and fell by 9.26% to $ 2,850. In other altcoins, the situation is as follows:
BNB followed the bearish wave with drops of 10.29%, Cardano 10.17%, Solana 9%, Polkadot 9.81%. Other popular altcoins XRP, Litecoin, Terra, Dogecoin, Shiba Inu, and Stellar have not changed. The altcoins in question are also trading in the range of 5-15% in the last 24 hours.
Fear and greed index in the market, on the other hand, is in a state of extreme fear with 19 points, taking its lowest score in recent times.
Latest Status in BTC
In order to say that the support of $ 40,000 in Bitcoin has been broken, it is necessary to get confirmation of this on a weekly basis. If there is a false close below $40,000, a drop to the $34,000 – $35,000 range is possible. Especially before the FED meeting, it is extremely important for BTC to start the new week above $ 40,000.
Why Did The Markets Crash?
Undoubtedly among the reasons for this hard crash in the crypto market Dow Jones, Nasdaq and S&P 500The consecutive declines in .
Particularly, Netflix’s decline of 20% after reaching a member number below expectations had negative effects on other technology companies.
In particular, the movement in the US stock markets, which will be opened at 16.30 Turkish time today, will be followed. The continuation of a downward movement will deepen the decreases in BTC.
On the other hand, US 10-year Treasury yields rose earlier this week, while rising currencies forced investors to give up their positions in riskier assets.
Also, the most important reason FEDwas expected to increase interest rates. According to what was spoken in the lobby, the FED is expected to increase interest rates at the meeting to be held on January 25-26. This, in turn, negatively affects the cryptocurrency market.
In addition, yesterday the Central Bank of Russia in the country bitcoin The proposal to ban mining and cryptocurrency trading may also have been a factor in this decline.