Memphis Blog

When will the drop in Bitcoin end?

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With the shares of Tesla’s CEO Elon Musk from his social media account, Bitcoin rose rapidly until April 14 and provided a return of over 100 percent. However, Elon Musk, who ignited the rise in Bitcoin, was also the architect of the decline that started from the historical peak.

In mid-April, Musk announced that they suspended the decision to use Bitcoin in the Tesla sale, noting that Bitcoin mining increased fossil fuel and coal consumption. A blow to Bitcoin, which fell with this statement, came from China. China has announced that it will not allow cryptocurrency mining and that it will not be able to trade with cryptocurrencies.

Cryptocurrency investors began to question the reason for the decline after the sharp fall in bitcoin. Bitcoin and Ethereum, the cryptocurrencies with the highest trading volume, started the weekend with a sharp decline. Bitcoin price, which moved between 51 thousand and 50 thousand dollars, decreased from 53 thousand to 42 thousand dollars. In terms of market dominance, there, which is in 2nd place, also showed a decrease of close to 20 percent. Ethereum tested below $3,500. So, why did Bitcoin fall, how many dollars today? Will Bitcoin continue to decline?

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WHY DID BITCOIN FALL?

Bitcoin, which saw its lowest level since September 30, is moving at $ 47 thousand 165 with a loss of more than 16 percent as of 10:44 pm. While the 7-day loss of Bitcoin (BTC) is 13 percent, the market volume is at the level of 997 billion.

Cryptomeda Founder Lark Steve explained to Memphis Monkey Newspaper the reason for the sudden drop in crypto money markets. Dengiz explained the reason for the dream as “I think it comes after the uncertainties caused by the Omicron variant and the Fed’s growing discomfort with high inflation.”

WORST SINCE 2018

According to the news from a worldwide newspaper, Bitcoin, which saw its historical peak with $64,869 in mid-April and fell with consecutive negative news, saw below $30 thousand on June 22. Bitcoin, which had the worst quarterly performance since the end of 2018, reached a 50 percent loss compared to the peak.

In altcoins, the losses were much higher. So much so that in some altcoins, losses have reached 90 percent compared to their peaks.

BITCOIN OR ALTCOIN?

There are different opinions about when the recovery in cryptocurrencies will occur. While some argue that the recovery will start from altcoins, some think that the recovery of Bitcoin, which led to the last decline, will revive the demand for altcoins. Another topic of discussion is whether cryptocurrencies have entered a bear market or are in a correction. If the markets entered a bear market dominated by a bearish trend, this trend lasts for at least 6 months, according to historical data.

HOW MANY DOLLARS IN BITCOIN?

1 bit costs $47608.40.

EL SALVADOR PURCHASE BITCOIN

El Salvador, seeing the decline in Bitcoin prices as a buying opportunity, announced that it bought 150 more Bitcoin at the level of $ 48 thousand 670.

El Salvador, the only country that accepts Bitcoin as a legal payment instrument, recently announced that it has decided to establish a Bitcoin city.

Central Bank (Fed) Chairman Jerome Powell gave a message in his recent statements that he could accelerate tapering. The realization of this rhetoric may also push the Fed’s interest rate hike calendar forward. The messages to be given to the Fed meeting to be held on December 14-15 will be critical. Possible changes in the Fed’s monetary policy are expected to have a limited impact on the cryptocurrency markets.

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