Bitcoin fell below $39,000. What reasons?
Bitcoin fell below $39,000 for the first time in more than a month. This is the most low since March. This is happening because cryptocurrency is not currently the main subject of interest from the world community.
Bitcoin Falls Below $39,000: Analyst Opinion
The technical charts show that despite Bitcoin’s recent drop, it is “far from oversold,” and near-term support at $35,000 likely won’t last, John Rock, technical analyst at 22V Research, said in a note on Sunday. “We still believe it will reach the $30,000 level,” he said.
Bitcoin is mostly trading in the $35,000 to $45,000 range this year. One of the reasons, according to Rock, is that the Federal Reserve began raising interest rates amid persistently high inflation. Analysis by data provider Glassnode shows that interest in bitcoin remains muted, with little growth in the coin’s user base and minimal flow of new demand.
What Other Reasons Could There Be For The Decline In The Rate Of Bitcoin And Other Cryptocurrencies?
Obviously, the beginning of the conflict between Russia and Ukraine also had a detrimental effect on the rise in the price of Bitcoin. First, the interest of the world community is now focused on the situation in Eastern Europe. And they are starting to forget about the hype of the cryptocurrency sector.
Secondly, the sanctions that were imposed on Russia undermined the economies of many European countries. In the current period, gas, oil, electricity, food prices have jumped not only in Russia, but throughout Europe. People simply have less money to invest in crypto assets. This was the main reason for the general decline in the cryptocurrency sector this year.
Against this backdrop, the largest cryptocurrency, Bitcoin, fell 4.2% to $38,580 on Monday. The second largest Ethereum coin fell 4.7% to drop to $2,902. The value of the global cryptocurrency market has fallen by about 4% in the last 24 hours to $1.9 trillion, according to pricing. CoinGecko.
Bitcoin Falls Below $39,000: Price Reversal
Many bitcoin bulls remain unwavering. For example, projections of $100,000 and even higher are still mentioned. But price targets like $500,000 and $1 million won’t be coming soon. Even despite the potential reversal of the course, which could occur at the end of 2022.
Read also: Russia Should Use Cryptocurrency For Settlements With Africa, The Head Of The Chamber Of Commerce And Industry Believes