Bitcoin didn’t have a great start this week, dropping by 1%, and it couldn’t catch the positive wave from the S&P 500. The crypto market, valued at $1.573 trillion, shows some warning signs with a 50-day EMA test. Bitcoin’s value hit a low of $39,494, bringing its market cap down to $784.8 billion, and it traded $30 billion in the last 24 hours.
Although it slightly bounced back to around $40,032.31, it’s been a rollercoaster, swinging between $39,494.65 and $41,269.88. Bitcoin gives some spine-chilling moments to inventors and traders; let’s see if the market is ready to buy the dip.
Why did the Bitcoin Price Plunged?
One big reason for Bitcoin’s fall seems to be a lot of money moving out of Bitcoin exchange-traded funds (ETFs). For example, the Grayscale Bitcoin Trust saw a massive $640 million leave in just one day, totaling a worrying $3.45 billion. Experts like James Seyffart and Holger Zschaepitz are pointing out this quick money exit and a general lack of interest in Bitcoin ETFs behind the recent sell-offs.
What Critics Are Saying
Big bulls have been claiming ETF hypes are overrated since last year; among those are Peter Schiff, who often criticizes Bitcoin, is concerned about the ProShares Bitcoin Strategy ETF, which has lost more than 50% since it started in October 2021, and he thinks other ETFs will face similar problems. But Jim Cramer keeps it short, saying, “Bitcoin is tough to own,” sticking to his previous prediction that Bitcoin would have a hard time.
How’s Bitcoin Been Doing in the last 30 days?
Bitcoin’s recent performance has been on a bit of a slide, losing 8.60% in the last 30 days. While it has done fairly well over a few months (up by 18.71%) and the last year (up by 74.82%), the forecast for the next five days doesn’t look so good, predicting a further drop of about 10.86% to $36,435. The cryptocurrency world is always unpredictable, and Bitcoin, despite its ups and downs, still has a fair bit of investor confidence, as shown by the Fear & Greed index at 55 (Greed), which is considered to be good.
What’s Next For BTC Price?
Underscoring such scenarios, bitcoin is surely walking on a tightrope. A potential 10.86% drop might hit $36,435 in the next five days. Monitor the mood, support, resistance levels, and other signs. Crypto is unpredictable, and even the big shots like Bitcoin can have wild moments. Stay steady!
