Bitcoin Price Falls: Bitcoin, the world’s largest cryptocurrency, has been falling for over a month now after scaling its record high of $69,000 in October this year. According to reports, over this week, Bitcoin and cryptocurrency prices have fallen sharply enough with the crypto market losing $1 trillion of its value since its November peak. Reports have also suggested that Bitcoin’s fall for five straight weeks, along with other risk assets, is a result of central banks taking being aggressive about inflation. Though the price of a unit of Bitcoin scaled $47,000 on Saturday, December 18, it remained below the $46,000 mark a day back.
On Friday, Bitcoin prices fell to as low as $46,501, going down by 4 per cent. According to a Bloomberg report, Bitcoin prices fell down about 32 per cent since reaching a record of almost $69,000 on November 10. However, the crypto coin still gained 60 per cent this year. Not only Bitcoin, other major cryptocurrencies like Ether, Binance, Solana and Cardano have declined over the past few weeks as global banks have tightened their policies. According to experts, the correction in Bitcoin prices was bound to happen since it reached its peak.
“Bitcoin gained more than 60 per cent in the period from September to November and hit an all-time-high(ATH) of $69,000 in between. Naturally, a correction was bound to happen as investors take some profits out. Such corrections happen frequently in the crypto market and it has always led to more growth and newer ATH. Bitcoin is expected to reclaim $60000 levels by year end,” said Vikram Subburaj, CEO and founder of Giottus Technologies.
“Downward pressure that has historically existed towards the end of the year has continued to keep prices low,” Bloomberg reported quoting a team of Grayscale researchers including David Grider.
And this might turn out to be true in the long run. Though volatile, Bitcoin prices on Saturday, December 18, were standing at $47,174.70 — which is more than its value a day back. However, Bitcoin prices have remained below the $50,000 mark for a while now.
“Investors will benefit from investing in a market that has undergone a correction. In a mid to long term, the prices are expected to steadily increase. We encourage all investors to buy cryptocurrencies according to their portfolio weights with higher allocation to Bitcoin and Ethereum, the blue chips of crypto, followed by other altcoins,” added Subburaj.
Bitcoin prices are on the decline as banks are prioritising the “fight against elevated inflation by tightening monetary settings”, said Bloomberg in its report. Lenders’ eyes are also on the newly emerged Covid-19 variant, Omicron, which is gradually spreading across the world. This has also frightened crypto investors, which ultimately resulted in Bitcoin’s downfall.
“The market is not quite in end-of-year mode, though one can certainly see it just around the corner,” said the ZebPay Trade Desk.
“Crypto has traded soft so far this week, with BTC touching below $46k on Tuesday. Bitcoin price lost the $47k support, and altcoin prices dropped by as much as 25% within a matter of moments, before tentatively recovering, and currently trades around the $49k mark. It’s by no means been a convincing bounce, and it seems like the crypto market is trading in a sideways manner. Having said that, BTC price retraced 8.2% over the past week, but it also outperformed the broader altcoin market,” it added.
Vikas Ahuja, chief executive officer of CrossTower India asked investors to hold or buy Bitcoin since post January demand will increase.