A 3.3% drop is occurring in 24 hours and the king of cryptocurrency is currently experiencing another collapse. Bitcoin currently trades at $38,210, which is the lowest level since March when US President Joe Biden issued an executive order regarding crypto regulations.
The BTC price rose to $40,800 Tuesday but it fell briefly afterward.
Bitcoin (BTC) Dips Below $40,000 Over Ukraine And Possibility Of Fed Rate Hike| Bitcoin (BTC) Dips Below $40,000 Over Ukraine And Possibility Of Fed Rate Hike
Amazon denies speculation about accepting BTC payments
Amazon’s retraction against the mass speculation that the retail giant will be accepting BTC payments was the main causative factor of the sudden drop. Ether fell even further.
BTC prices rose immediately after Amazon posted a job posting that was connected with crypto. A spokesperson for Amazon denied that Bitcoin would become a preferred payment option this year, just a few hours later.
Bitcoin reached a peak of US$40.545 due to investors jumping at the chance for a bearish trend. The amount of cryptocurrency shorts that were liquidated was more than $950 million, which is the largest since May 2017.
Multi-Wave Correction
Bitcoin, like all other cryptos, experiences volatility. This is known as a multiwave correction. It peaked around April and it’s expected to rebound to a maximum of $45,000 before it slides again.
BTC’s rollercoaster ride is part of this correction. A flood of regulatory and environmental problems caused a major decline in the cryptocurrency industry.
Source: TradingView.com| Source: TradingView.com
This week’s frantic moves of BTC and other tokens are expected. Investors continue to look for the next major wave of BTC that will break out of the current trading range of $30,000-$40,000, as well as other tokens.
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Where’s Bitcoin Headed?
This week, the risk level for investors is slightly higher as Wednesday is when Federal Reserve will announce their decision.
Even more, the announcement of an investigation into alleged bank fraud by Tether executives has thrown the crypto industry in disarray.
BTC investors deal with economic, political and environmental issues, including the Fed. This year’s March inflation rate was far worse than that of 1981.
Many factors have combined to cause volatility in stock and crypto market.
As Bitcoin’s performance in the coming days will dictate how things will turn out, it is believed that Bitcoin’s current price range will be somewhere in between. It could be either bullish or bearish. BTC performance at this range will give people a clue about where it’s going.
Featured image taken from The Facts Chronicle. Chart from TradingView.com