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There are speculations that the price drop is traceable to further tension from Russia’s invasion of Ukraine and also the US Federal Reserve interest adjustment policy.
In what is an unexpected downturn, the Bitcoin price has dropped to about $38,000 after this crypto asset was rallying for more than a month. Bitcoin was not alone in the slump as the price of all major cryptocurrencies slipped in the last 24 hours. The second-largest cryptocurrency, Ether, dropped by 3.55 % to $2,844.18. While Polkadot fell by 5%, XRP was down 4.43%, Avalanche dropped by 3.42%, BNB by 3.30%, and Stellar fell by 3.06%
Solana also fell by 3.17%, Cardano by 2.90%, Terra by 1.21%, and Dogecoin by 4.05%. According to data from CoinMarketCap, the global cryptocurrency market went down by 2.32 percent in the last 24 hours at a valuation of $1.80 trillion.
Why Bitcoin Price and Other Crypto Assets Slipped
There are speculations that the price drop is traceable to further tension from Russia’s invasion of Ukraine and also the US Federal Reserve interest adjustment policy. Additionally, WazirX suggested the price slump corresponds with the accumulation of BTC by whales and institutes. This, it claimed, led to a supply crunch.
WazirX further asserted that it was expecting a bounce back from the level. “The next resistance for BTC is expected at $48,600 and immediate support is expected at $37,600,” said the WazirX trade desk. Several others agree to this, placing large orders at the reversal point.
There are many other investors who negate this opinion believing that a bear cycle may be in order. These investors point out that there is no actual support for Bitcoin around $37,500. Consequently, should the price drop further, the next support for Bitcoin will be at $30,000.
Overall Profit Increasing Despite Unstable Market
Meanwhile, Chainalysis published a new report detailing the profit made by crypto investors last year. The data suggest that crypto investors made about $162.7 billion in profits in 2021. Compared to $32.5 billion profit in 2020, there’s a 400% increase in profit.
This suggests that regardless of the fluctuating market, many people are still delving into cryptocurrencies and making a profit from them.
Asides from the cryptocurrency market, the European markets also declined over the weekend. At the time of writing, Bitcoin is trading around $38,554.