The price of bitcoin drops below $38,000, creating a state of panic.
Bitcoin’s price fell to two-week lows in a matter of days, but sentiment decreased even faster. Will bitcoin increase is only a hope for the future.
On Feb. 20, Bitcoin (BTC) fell below $38,000 for the first time in over two weeks as macro events shook low-volume weekend markets.
“Nothing to get excited about,” says a BTC trader.
Following threats of more sanctions on Russia for its alleged plans to attack neighboring Ukraine, data showed BTC/USD losing momentum on Sunday.
Following comments from United Kingdom Prime Minister Boris Johnson on financial bans on Russian firms, crypto began to fall after a quiet Saturday if the situation escalates.
The BBC quoted Johnson saying on Sunday morning that they would be prevented from “dealing in pounds and dollars,” pointing to US Vice President Joe Biden’s support.
Because crypto is the only market that is always open, the reaction to geopolitical anxieties in the region could signal a more prominent impact next week when traditional markets open. On Wall Street, Monday is a holiday.
Mike McGlone, the chief commodity strategist at Bloomberg Intelligence, also commented on the situation, raising the persistent issue of inflation and its relationship to risk asset performance.
However, following earlier remarks, he predicted that Bitcoin could benefit in the long run from the sweeping changes in US economic policy this year.
“Bitcoin is predicting a hard week – Inflation Unlikely to Drop Unless Risk Assets Do: Most assets are vulnerable to the ebbing tide in 2022, on the inevitable reversion of the largest inflation measures in four decades, but this year may represent another milestone for Bitcoin,” he argued.
Short timeframes were now equally unpopular among Bitcoin traders, with a $40,000 loss impacting emotions.
On Bitstamp on Sunday, BTC/USD hit a low of $37,974 before rebounding to hold over the $38,000 mark.
Bitcoin market cap – A terrifying terror emerges.
The level has served as a springboard for bulls since it was first broken in 2021, and according to prominent Twitter account Mayne, a recapture should be their first move to secure upside.
“For BTC, $40k has been a crucial mark over the last year. We’ve seen a massive surge to the upside each time price has broken below and subsequently recaptured. Right now, this is probably an excellent location to keep an eye on. “It commented on Sunday.
In the meanwhile, it looked that the public was anticipating more losses. After briefly touching “extremely fear,” the Crypto Fear & Greed Index was back in the “fear” zone on the day, with a plunge of nearly 50% in just four days.
On the other hand, others continued to focus on the historical significance of $40,000 in Bitcoin’s price.