Causes of the Bitcoin Price Sliding Below US$30,000

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Bitcoin price continues to weaken or dropping below $30,000 for the first time since July 2021. This marks a drop 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 trade. Ether fell 3.7%, Solana fell 8.2%, and Avalanche fell 10.4% from its previous price.

Causes of Bitcoin Prices Dropping

“We saw a slow-motion meltdown, because most of it was a sell-off in the old holders. Now some corporate treasuries are hovering near their cost base.

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

Causes of Bitcoin Prices Dropping

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

Michael Novogratz, the billionaire cryptocurrency investor who leads Galaxy Digital Holdings Ltd., says that he thinks things are going to get worse before they get better.

It is possible that Bitcoin and Nasdaq will continue to be traded concurrently until a new equilibrium is reached.

My gut feeling is that there is some more weakness to be had, and it is going to trade in a very choppy, volatile and tough market for at least the next few quarters before one feels we even out,” said Novogratz.

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

Says will issue loans worth around $1.5 billion in Bitcoin and TerraUSD to help strengthen TerraUSD's peg after dropping 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 Bitcoins to OTC trading firms, it will be enough to sustain a time 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 trade. Ether fell 3.7%, Solana fell 8.2%, and Avalanche fell 10.4% from its previous price.

Thus the article about the Causes of the Bitcoin Price Slumping Below US$30,000, besides that we also make articles What is bitcoin unfi? Hopefully the above article can be useful and helpful for all of you.

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