The bitcoin (BTC) exchange rate dropped to its lowest level in three months. This comes days after cryptocurrency analysts warned that price charts were sending bearish signals. Bitcoin will reach its ATH at the end of 2021, on November 10, reaching the level of $ 69,000. Yesterday’s drop below $34,500 means a correction of more than 50%.
The BTC rate continues to drop
At the time of writing this article, the rate of the original cryptocurrency is $33,575. This is a decrease of 3.33% compared to yesterday, but also by 13.97% compared to the previous Monday. This is the lowest level of BTC since January 24, 2022. Bitcoin’s market capitalization is currently $639,104,629,275.
The Fear and Greed Index is also going down. He has already found himself in the territory of extreme fear. If bitcoin falls below $32,951, it will reach the new low last recorded in July 2021.
The second largest cryptocurrency – ether – is also falling. For one ETH we currently have to pay 2 451.70 dollars. The rate fell by 3.94% during the day, and on a weekly basis ether loses 13.86%.
Bitcoin in recent months has mainly fluctuated between $35,000 and $46,000. This means that the recent price drop may be a harbinger of the beginning of a new market trend – the bear market.
Markets are uneasy
What’s more, a report released by the U.S. Labor Department on Friday showed that employment growth last month remained strong, which should raise the Federal Reserve’s concern about too little space in the labor market. As the struggle for workers among employers increases, wages may also start to jump, and as a result, inflationary pressures increase, forcing the Fed to tighten monetary conditions faster. Recently, BTC has reacted very negatively (as well as shares) to the latest actions of the US central bank.
Many investors were also shocked by the recent release of data that revealed that the stablecoin from the Terra blockchain – UST – lost its association with the US dollar for a moment on Saturday. This was a consequence of the fact that more than 2.2 billion UST was paid out from the Anchor protocol in less than two days. All thanks to the rate of return, which decreased by 1%.
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