Bobos & Wojaks

Get rich or die tryin

Bitcoin Drops To A Six-month Low Of $38,000 As A Result Of The Cryptocurrency Selloff

bitcoin-crypto-investment

Bitcoin fell below $38,000, its lowest level in six months, as part of a broader cryptocurrency sell-off.

On Friday, the largest token fell as high as 8.7%, capping a three-day decline. According to data from Coinglass, a cryptocurrency futures trading and information platform, almost 236,000 traders had their positions cancelled in the last 24 hours, with liquidations reaching $867 million.

In a turbulent week for global markets, investors offloaded riskier bets, sending other cryptocurrencies into the negative. Ether dropped below $3,000, dropping up to 11%, while Solana, Cardano, and Binance Coin also dropped.

Bitcoin has had a bumpy start to the year, with values down more than 40% from its peak in early November. A wider tech selloff, mounting regulatory risks, and concerns about tightening US monetary policy have all hurt digital assets in recent days.

Regulators in the United Kingdom, Spain, and Singapore recommended tougher limits on crypto-asset advertising to inexperienced investors this week, while the Russian central bank proposed a complete ban on cryptocurrency on Thursday.

“Rumors of Russian mining bans, the effects of tapering programs and ongoing regulatory concerns in certain jurisdictions are currently taking more weight in trading and investment decisions than the underlying long-term fundamentals,” According to Jason Deane, an analyst at Quantum Economics, a digital asset analysis organization.

bitcoin-crypto-cryptomarket

“At the same time, increased use and adoption of Bitcoin in high-inflation economies creates a confusing market picture leading to lack of decisive direction and momentum either way,” he added. 

In the short term, Deane projected “choppy, directionless trade,” with more weakness possible.

A technical pattern based on the weekly relative strength index, a momentum indicator, suggested that Bitcoin’s downturn might be due for a break. The indicator fell into a territory on Friday that had previously followed floors in Bitcoin selloffs.