Causes of Bitcoin Prices Falling Below US$30.000

Nafa Lightyani

Causes of Bitcoin Prices Falling Below US$30.000

Rancakmedia.com – In the article above we have discussed the causes of the Bitcoin price falling below US$30.000 which is what many people are looking for.

Bitcoin prices continue to weaken or fell below $30.000 for the first time since July 2021. This marks a decline of more than 55 percent from its peak in November 2021.

On Tuesday, 10/5/2022, according to Bloomberg, the world's most valuable cryptocurrency fell 1% to US$29.992 in Asian trading. Ether fell 3,7%, Solana fell 8,2%, and Avalanche fell 10,4% from its previous price.

“We saw a slow-motion meltdown, due in large part to long-holder selling. Now some companies' treasuries are hovering near their cost basis.

The market is waiting and watching to see if shareholders will push through some risk,” said Josh Lim, head of derivatives at New York-based brokerage Genesis Global Trading.

Causes of Bitcoin Prices Dropping

When the Federal Reserve tightens monetary policy to fight inflation, markets crypto collapsed, pushing investors away from speculative assets in international markets.

Michael Novogratz, the billionaire cryptocurrency investor who heads Galaxy Digital Holdings Ltd., said he thinks things will get worse before they get better.

It is possible that Bitcoin and Nasdaq will continue to trade simultaneously until a new balance is reached.

“My hunch is that there is some more weakness to be had, and it will be trading in a very choppy, volatile and tough market for at least the next few quarters before people feel like we are even,” Novogratz said.

Meanwhile, Luna Foundation Guard (LFG), an association created to support the TerraUSD decentralized token and blockchain.

Said it would issue loans worth around $1,5 billion in Bitcoin and TerraUSD to help strengthen TerraUSD's peg after it fell below $1 last Saturday. as the crypto market continues to plummet.

“We are watching closely to see how the market fares over the next 24 hours. This includes whether mechanisms are introduced to help increase dependency.

"Like LFG lending Bitcoin to OTC trading firms, it will be enough to survive times of severe stress or if we need additional stabilization mechanisms," said Steven Goulden, senior research analyst at crypto market maker Cumberland DRW.

According to statistics provided by Bloomberg, the benchmark S&P 500 stock has a 40-day correlation around the record, meaning that any additional decline in the stock market could bring Bitcoin down with it.

Conclusion

On Tuesday, 10/5/2022, according to Bloomberg, the world's most valuable cryptocurrency fell 1% to US$29.992 in Asian trading. Ether fell 3,7%, Solana fell 8,2%, and Avalanche fell 10,4% from its previous price.

That's the article about the causes of the Bitcoin price falling below US$30.000, apart from that we also made an article What is unfi bitcoin? Hopefully the article above can be useful and helpful to all of you.

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Nafa Lightyani

I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends.