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Ether suffered a similar fate on Thursday, suffering a drop of over 4% trading around $2,900 on the early stages of Friday.
Bitcoin price suffered its biggest drop in four weeks on Thursday when it plummeted below $41,000. According to data from Cointelegraph Markets Pro and TradingView, Thursday’s afternoon rebound in sell-side pressure pushed Bitcoin to a daily low of $40,631 as bulls scrambled to prevent a dip below $40,000.
The over 7% drop in the price of bitcoin was its largest slide since January 21 when it fell more than 11%. The price of the biggest cryptocurrency, dropped 7.4% to $40,631.78 at 22:05 GMT on Thursday, down $3,248.05 from its previous close.
Bitcoin’s price fall, like always, once again took a majority of the crypto market along for a ride as many altcoins saw red on Thursday. Ether suffered a similar fate on Thursday, suffering a drop of over 4% trading around $2,900 on the early stages of Friday. Solana, one of the best-performing coins this week also saw a near 7% drop in price on Thursday.
Bitcoin was enjoying somewhat of a stable week, posting its strongest gain in weeks before its price went down on Thursday. The digital coin is now up more than 5% month to date but also down 12% year-to-date.
Bitcoin and altcoins Thursday’s price drop has been attributed to the political tension between Ukraine and Russia which seems to be intensifying as each day goes by, leading to another round of sell-off as analysts are predicting a worsening macroeconomic climate which could push Bitcoin price further below the $40,000 mark.
Bitcoin’s price losses are also now up to 13% this year and with many markets currently weighing growing tensions in Europe as Russia continues its standoff with Ukraine, the year could be a long run for the digital coin and the crypto market as a whole.
According to a State Department spokesperson, Bart Gorman, the US deputy chief of mission to Russia, was expelled from the Russian capital on Thursday, after President Biden warned that the threat of a Russian invasion of Ukraine remains “very high.”
Edward Moya, a senior market analyst at the foreign-exchange brokerage OANDA speaking on the new development in the crypto market stated that:
“Bitcoin was the victim of a major de-risking environment on Wall Street as investors view short-term geopolitical risks and potential overly aggressive Federal Reserve monetary tightening as a risk to all risky assets.”
Bitcoin, at press time, was trading at $40,893, down 5.39% over the last 24 hours.