CryptoWallCity vs MEXC Exchange

What is the reason why Bitcoin keeps falling back?

Bitcoin price continues to trade below the $40,000 price point, dragging many other cryptocurrencies back into the quagmire of weakness.

Over the past 24 hours, the Bitcoin price has recorded as low as $38,850. According to CoinMarketCap, the amount of Bitcoin traded during the above period is quite low, only 15-18 billion USD. The recorded market capitalization is $744 billion.

The fact that Bitcoin returned below the threshold of $ 39,000 caused the whole market to sink into the red, many of the top altcoins fell from 3-7% compared to the past 24 hours.

The deep drop of most large-cap altcoins brought the total market cap down to $1.9 trillion.

Bitcoin has been very erratic lately. Last week, when the price of the cryptocurrency fell below $40,000, a strong buying force pushed the price above $41,000. But then, the price of Bitcoin continued to fall.

According to analysts, Bitcoin and many other digital currencies plummeted because many countries are tightening monetary policy and raising interest rates. Since the beginning of the year, Bitcoin has mainly traded in the $35,000-$45,000 region as the US Federal Reserve (Fed) started raising interest rates in response to record inflation.

According to an analysis from data firm Glassnode: “Investor interest in Bitcoin is tepid. The number of new users and capital flows into the market is continuously decreasing.”

Even so, many forecasts for prices of $ 100,000 or more are still being made. Nexo CEO Antoni Trenchev believes that “Bitcoin can hit the $100,000 mark next year.”

Similarly, expert Mark Stephany, founder of Theprogressivebitcoiner, thinks that the rapidly growing Bitcoin community with a diversity of crypto enthusiasts around the world is an optimistic sign, and the digital currency. The world’s most valuable asset will soon regain its growth momentum.

The Crypto Fear & Greed Index is at 23, indicating “extreme fear” market sentiment. For the whole week, this index hovered around just under 25.

In the last 24 hours, $187 million of positions were liquidated.

In the last 24 hours, $187 million of positions were liquidated.
In the last 24 hours, $187 million of positions were liquidated.