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Bitcoin Is Showing Signs of Recovery After Hitting 7-Month

Bitcoin recovers after hitting seven month low

Bitcoin rallied on the afternoon of January 24, trading more than $ 37,000, after falling seven months in the morning, as the cryptocurrency moves forward with a rapid rally of dangerous assets.

Bitcoin was trading at $ 36,800 at 5pm, up, up 4.7% per day, according to CoinDesk. This morning, it traded under $ 33,000 for the first time since July. That extended its sales to a loss of more than 50% from its record high of $ 68,990.90, set on November 10.

The decline should not surprise crypto lovers much. It is the eighth time since bitcoin was introduced in 2009 that it has dropped by more than 50%, and for the third time since 2018, according to Charlie Bilello of Compound Capital Advisors. From April to July last year, it dropped by 52%.

Bitcoin Is Showing Signs of Recovery After Hitting 7-Month

Bitcoin Is Showing Signs of Recovery After Hitting 7-Month

Cryptocurrencies are swept away in a market that sells highly risky items, especially technology companies. The driver, analysts say, is the US Federal Reserve and its plans to withdraw the pressure from the economy and raise interest rates. Nasdaq’s tech-heavy stock index has dropped by 12% since the beginning of the year.

“Crypto is a growing industry that trades as a commodity,” said Martha Reyes, head of research at Bequant, a European digital-assets brokerage. “It’s amazing this morning and it’s completely driven by the surrounding area, which is attacked by the Fed.”

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Retail investors also appear to be taking a step back from investing in crypto, according to Reyes. The volume of the small-scale transfer, which represents the retail sales utility, fell by more than 40% between the first and fourth quarters of last year, according to data from Glassnode, a blockchain data research company.

This may be because market interest rates are shifting to more advanced digital assets. Google wants ‘NFT’, an abbreviation for immovable tokens, which rose sharply last year and entered 2022. Meanwhile, search for “bitcoin” declined last June and remained at depressed levels until it rose during the last week’s selloff.

Some cryptocurrencies are much better than bitcoin. Ether, the second most popular digital currency, dropped by 50% less than the last record never reported, again in November. Solana, a cryptocurrency that gained popularity last year, fell by 64% and Shiba Inu, another meme-based digital currency, dropped by 74%.

“It makes sense to me that broad crypto is hit hard. It’s all about renaming, which should be associated with risky assets,” said Joel Kruger, a financial analyst at LMAX Group. “Ether is almost like an index, the sum of all the projects integrated into the ethereum blockchain” such as games, NFTs, finance projects divided into smart contracts.

Bitcoin recovers after hitting seven month low

The measures are very different from the expectations of investors and analysts. A JPMorgan analyst said in October that bitcoin could eventually reach $ 146,000.

In the near future, traders are focusing on the closest number: $ 30,000, which is important for more than just a large, round number. That level is almost the lowest selloff of April-July 2021, and it is about where bitcoin opened in 2021.

The decline below it will therefore restore the price of bitcoin to its levels by 2020. That means everyone who bought their first bitcoin in the last 13 months – and the crypto market size doubled by then during the rush for new buyers – will be red.

“This is an important time for bitcoin,” said Oanda analyst Edward Moya. “If the shock of a sales return on Wall Street, the $ 30,000 level may not be very supportive.” learn more.

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