BITCOIN has plummeted close to the dreaded “cross” phase amid fears of a mass sell-off.
It has collapsed since the US Federal Reserve pulled out massive liquidity, which has been pumped into markets since the coronavirus pandemic broke out.
Fears are also growing that the Fed could further cut support for the US economy, which is bad news for riskier assets like cryptocurrencies.
Today, the Bitcoin price briefly fell below $40,000 for the first time since September.
At the time of writing, Coindesk shows a drop in the price of bitcoin, the largest cryptocurrency by market cap has changed hands at $40,834, based on CoinDesk valuation, down 12% so far in 2022 — one of the worst starts Bitcoin’s most ever in a year.
Naeem Aslam, principal market analyst at Avatrade, said: “The main culprit behind the drop in crypto prices is the Fed’s decision to drain the massive amount of liquidity that has been pumped into the markets since since the coronavirus pandemic broke out.”
Kraken’s research shows that many of Bitcoin’s previous death crosses, including those seen in 2014 and 2018, coincide with “either a sell-off in the following days or a continuation of a macro downtrend.” confirm a bear market”.
But this does not always happen.
That time it was settled in a fresh bull run.
After the December crash, Bitcoin was trading around $50,000.
The value of Bitcoin has fluctuated wildly since its launch in 2009.
https://www.thesun.co.uk/news/worldnews/17280729/bitcoin-price-plunges-close-dreaded-death-cross/ Bitcoin price plunges close to the ‘first decade of life’ raising fears of catastrophic sell-off