Bitcoin Plunges Below to $40,000 For the First Time Since August

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Bitcoin Plunges Below to $40,000 For the First Time Since August
22 Jan 2022
6 min read

News Synopsis

The biggest cryptocurrency, Bitcoin has slumped down by almost 20% over the last month. Bitcoin went down by 6.6% taking it to $39,140.16 on the Coinbase exchange. Like bitcoin, ethereum has also slumped down by 30% during the last month.

Investors of both cryptocurrencies have been rapidly engaged in selling both the currencies and speculative technology stocks in anticipation of the Fed withdrawing its support for markets and the economy this year. 

Traders also believe that the central bank will raise rates four times this year, and this can be the reason behind the rapid bond yields, which can make crypto and unprofitable tech companies look unattractive. 

The chief market analyst at AvaTrade, Naeem Aslam has said that pessimism continues to grow among investors and traders when it comes to riskier assets and this is influencing the price of equities and bitcoin. He also said that the bitcoin price has also violated the key support level of $40,000, which has already been tested out a few times before.

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