Bitcoin’s price slumped further over the weekend to levels not seen since last August, as a selloff of riskier assets like stocks spread to cryptocurrencies. Bitcoin has now shed about 50% from its record high in November. That level represented the start of a CME futures gap leftover from July 2021, Bitcoin “filling” it almost to the dollar before reversing upwards to add over $1,000 in minutes.
The % of #Bitcoin unmoved for 12 months or more just hit 60%
… which is higher than after the March 2020 COVID crash
… higher than at the end of the 2015/16 bear market
… higher than at the end of the 2018/19 bear market
— Alistair Milne (@alistairmilne) January 24, 2022
Bitcoin has now fallen nearly 20% over the last week.
Bitcoin’s price had already taken a major hit last week when it fell from around $43,000 to around $38,500. But that plunge continued today, taking it to a low of around $33,000. Bitcoin has now fallen nearly 20% over the last week. Other coins have seen even more dramatic losses: Ethereum is now down 27% over the past week. Anyone that bought bitcoin at the start of the year has now seen it lose more than 24% of its value in just three weeks.
The declines in crypto prices followed a volatile session on Wall Street.
The declines in cryptocurrencies’ prices followed a volatile session on Wall Street on Friday that saw stocks swing from early gains to a selloff, as investors repeated this week’s pattern of selling rallies, pushing the Nasdaq Composite deeper into correction territory. The pessimism continues to grow among investors and traders when it comes to riskier assets, and this is chiefly influencing the price of equities and bitcoin,” said Naeem Aslam, chief market analyst at AvaTrade, in a note to clients. BTC Supporters had hoped in recent days that the $40,000 level would be an important psychological barrier and that the price could stabilize above that level. Instead, it has dropped way below that and continued to trade down.