Cryptocurrencies fell on Friday, pushing the Bitcoin price to its lowest level in more than five months as fears of risk aversion swept global markets. Altcoins also got their share from this. cryptocoin.com We are giving the details as…
What is behind the sharp decline in Bitcoin and altcoins?
The largest cryptocurrency fell 7.4 percent to $38,261 while Ethereum (ETH) fell below $3,000. Cardano (ADA) fell 8 percent, DOGE and SHIB fell 6 percent. Total cryptocurrency market cap has lost nearly $1 trillion since its November peak. “Bitcoin and the broader crypto market continue to be subject to the whims of macro variables,” Fundstrat Digital Asset Research strategists Sean Farrell and Will McEvoy wrote in a note. Recently, Bitcoin has followed the fluctuations in tech stocks under pressure. The Nasdaq 100 also entered a correction on Thursday. The Dow Jones and S&P 500 are also down.
A technical pattern based on the weekly relative strength index pointed to the possibility that Bitcoin’s decline could be due to a “breathing”. On Friday, the indicator fell into a region that has accompanied bottoms in Bitcoin sales in the past. Bitcoin has more than quadrupled in the past two years, but has lost nearly $30,000 since hitting a record high of almost $69,000 in November.
In addition, the news that the US Federal Reserve will raise interest rates in the past weeks has also caused a sharp loss in the price of the leading cryptocurrency. Now, expectations that the Fed will increase interest rates at its meeting on January 25-26 may also be shaping the market.
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