Bitcoin drops to $ 48,000! BTC drops 16% Since December, best performance in May

Bitcoin (BTC) started to fall after breaking above $ 52,000 at 1:00 a.m. yesterday. After falling below the $ 50,000 level yesterday, Bitcoin (BTC) fell further today, falling below the $ 48,000 level of at least $ 47,313. dollar. He reported a temporary gain of US $ 47,765, down 4.24% in the past 24 hours.

According to data from Coinmarketcap, the cryptocurrency market has fallen due to a decline in Bitcoin. For key gains, ETHer (ETH) fell more than 5% to $ 3,760, while Solana (SOL), Cardano (ADA), Ripple (XRP), Terra (Luna) and Polkacoin (DOT) all fell. by 5%. . and 7%.

Affected by major changes in the market, in the past 24 hours the total liquidity of the entire cryptocurrency network reached $ 419 million and 1,273.7 million people were employed. . Among them, Bitcoin’s liquidation was $ 138 million, followed by Ethereum’s liquidation at $ 113 million, in second, and Solana’s liquidation at $ 12.71 million, in third.

Investor sentiment is deteriorating as the economy declines. The Crypto Fear & Greed Index fell from 41 yesterday to 27 today, according to data from Alternative.me, with a sense of fear in the market.

Are companies trading after this week down?

“Bloomberg” reports that investors recently pulled out of some of the world’s most valuable stocks, fearing the Fed could cut backing measures, which could lead to problems. . It’s also a hot topic for investors, and given the Fed’s plan to do everything in its power to keep prices afloat, Bitcoin’s attractiveness to curb inflation might make no difference. .

Matt Maley, Marketing Specialist at MillerTabak Co. admitted it was surprising to see cryptos sell off before last year, as many cryptocurrencies remain the big winners in 2021 despite the recent turmoil. This could be the cause of the cryptocurrency market crash this week.

As Matt Maley points out: If investors were involved late, the returns from cryptocurrencies would not be huge. In fact, some will lose money, so you can shrink your crypto assets a bit and have an impact elsewhere. like actions.

More than $ 6 billion in options will expire on Friday.

According to data provided by data analytics platform Skew, a total of 129,800 bitcoins with more than $ 6 billion in bitcoin options traded expired on Friday. Maximum pain occurs and a stable direction of change appears a few days after settlement.

“Coindesk” says that these price movements are often caused by the choice of sellers (usually private investors) to control the retail market to bring the ask price closer to the price compared to most contract options, which is the most logical. who is the biggest loser, and according to data from cryptocurrency firm Blofin, the toughest price for the option completed on Friday was $ 48,000.

Separation of American raw materials

Meanwhile, it’s important to note that Bloomberg has pointed out that this year Bitcoin is a similar commodity to the U.S. commodities market, but that pattern broke this month. However, Bitcoin fell around 16%, marking its worst monthly performance since May. This is the first time since June that Bitcoin and US commodities are different.

For analysis, Katie Stockton, founder and CEO of independent research firm Fairlead Strategies, estimates that the next level of Bitcoin support based on the Fibonacci retracement is around $ 44,200.

Katie Stockton believes that the $ 50,000 symbol is not very important but has a psychological effect, and that Bitcoin is now in a state of flux and appears to have responded to overbought in the short term.

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