Bitcoin Price Drops, Lowest Since Last 3 Weeks

Bitcoin Price Drops, Lowest Since Last 3 Weeks – Bitcoin Price Drops, Lowest Since Last 3 Weeks

The price of Bitcoin has been declining lately, dropping below USD 40,000 to be precise at around USD 39,000 or around IDR 560.3 million. This decline is the lowest for Bitcoin since the last 3 weeks.

In the midst of the price decline that occurred in Bitcoin, investors are still closely monitoring the highly uncertain geopolitical landscape.

Cryptocurrencies are experiencing these fluctuations at a time when many investors and consumers are concerned about price spikes. Traditional measures of inflation have hit their highest levels for decades in the US and UK.

Further, there are concerns about slowing US economic growth, as The Conference Board think tank recently forecast inflation-adjusted GDP to increase at an annualized rate of 1.7 percent during the first quarter, a sharp decline from 7 percent during the previous quarter.

The combined challenge of high inflation and sluggish growth expectations has materialized at a time when Federal Reserve policymakers expect to continue tightening monetary stimulus, a development that has the potential to provide a drag on global economic conditions and asset prices.

Several analysts are considering this development, including the head of research at major digital asset brokerage and exchange Bequant, Martha Reyes.

“Digital assets are pulling back as we hit peak inflation and interest rate hike concerns while growth is expected to slow,” he said, quoted by Forbes, Tuesday (12/4/2022).

“Inflation data is out this week but it is lagging, not a leading indicator. Our main concern right now is growth which will continue to hurt risk assets like crypto,” Reyes continued.

Reyes emphasized that despite these macroeconomic challenges, crypto adoption continues, and several developments can help accelerate the increase in crypto usage.

“Crypto is constantly evolving as evidenced by the wider integration of payments. Regulations can still be a catalyst,” said Rayes.

“If inflation continues, developing countries will embrace crypto more,” he concluded.

Crypto Prices Tuesday morning 12 April 2022

Bitcoin Price Drops, Lowest Since Last 3 Weeks

Previously, the price of Bitcoin and the top-tier crypto was seen starting to return to the red zone, Tuesday morning, April 12, 2022. All of the top-tier cryptos have performed poorly over the last 24 hours.

Based on data from Coinmarketcap, Tuesday morning, the cryptocurrency with the largest market capitalization, Bitcoin (BTC) fell quite large, namely 7.51 percent in the last 24 hours, and 13.94 percent in the week.

Currently, the price of bitcoin is at the level of USD 39,914.62 per coin or equivalent to IDR 573.1 million (assuming an exchange rate of IDR 14,360 per US dollar).

Ethereum (ETH) has also fallen quite a bit. Over the past 24 hours, ETH slumped 8.96 percent and 14.81 percent in the week, respectively. With that said, ETH is currently at USD 2,995.34 per coin.

The next cryptocurrency, Binance coin (BNB), also corrected. In the last 24 hours BNB fell 7.17 percent and 11.14 percent for the week. This makes BNB priced at USD 396.97 per coin.

Then Cardano (ADA) also managed to get back down in the red zone. In the past day the ADA fell 11.14 percent and 20.88 percent in the week. Thus, ADA is at USD 0.9454 per coin.

Meanwhile, Solana (SOL) also corrected quite deeply. During the last one day SOL fell 12.09 percent and 23.12 percent a week. Currently, the price of SOL is at the level of USD 100.88 per coin.

XRP also has the same fate as other cryptocurrencies. In the past day, XRP fell 8.91 percent and 15.09 percent in the week. That way, XRP is now priced at USD 0.7008 per coin.

Even though Terra (LUNA) bought up Bitcoin again as its balance sheet, it didn’t have any impact. Terra is still down 13.39 percent in the last 24 hours and 28.06 percent in the week. Currently Terra is priced at USD 82.92 per coin.

Stablecoins such as Tether (USDT) and USD coin (USDC), both weakened today, namely USDT by 0.01 percent while USDC was 0.01 percent. That way, USDT is at USD 1.00 per coin. Meanwhile, USDC dropped to a price of USD 0.9998.

Causes Bitcoin and Other Top Crypto Prices To Drop

Bitcoin Price Drops, Lowest Since Last 3 Weeks

Previously, the largest Cryptocurrency by market capitalization, Bitcoin continued its decline in the last two weeks on Tuesday, April 12, 2022.

This is driven by the influence of investors who continue to retreat from speculative assets amid ongoing concerns about inflation and the possibility of a global recession.

Bitcoin recently dropped below USD 40,000 to be precise in the range of USD 39,000 or around IDR 560.3 million. It’s a drop of more than 5.4 percent over the last 24 hours and down from a late-March high above $47,000.

Ethereum, the second-largest cryptocurrency by market cap, as of Tuesday morning was below $3,000, to be precise in the $2,900 range. A drop of more than 6 percent over the same period after dropping below this threshold the previous day and for the first time since the middle of last month.

Other major altcoins fared worse, with LUNA tokens Terra, Solana and Cardano all in red with double digits. The DOGE and SHIB meme coins also outperformed significantly.

Crypto market performance trailed stock markets, with the tech-focused Nasdaq down 2.1 percent and the S&P 500 down 1.6 percent as investors awaited the release of the Consumer Price Index, which is widely expected to show worsening inflation.

FxPro Senior Financial Analyst Alex Kuptsikevich highlighted the increasing correlation between the crypto and stock markets, especially with the Nasdaq index.

“This relationship is easily explained by the fact that in both cases, investors are betting on progressive ideas and not on stable earnings,” Kuptsikevich said.

In addition, the Russia-Ukraine conflict has disrupted supply chains and increased energy costs, which had soared prior to the conflict, which indirectly had an impact on the crypto market.

Noting the decline in Bitcoin’s 50-day moving average near USD 42,000, Kuptsikevich said the crypto could have some bad days ahead.

“A fixing of prices below this level could open a direct path to the March low area near USD 38K,” he concluded.

Observer Says Bitcoin Price Will Be Depressed

Bitcoin Price Drops, Lowest Since Last 3 Weeks

Previously, bitcoin as a cryptocurrency with the largest market capitalization had to be willing to settle below the level of USD 42,500 or around Rp. 610.3 million on Monday, April 11, 2022.

The decline in prices since the first week of April is still stinging sentiments of increasing economic uncertainty related to the Russia-Ukraine conflict and rising interest rates by the US central bank.

Bitbull’s chief fund manager Joe DiPasquale said bitcoin would be under pressure in the next few weeks.

“While some support occurred over the weekend, BTC volume was low to achieve a major push to push the price above USD 48,000, BTC will likely remain under pressure and struggle to reach USD 40,000 in the coming weeks,” said DiPasquale, as quoted by CoinDesk. , Monday, April 11, 2022.

Ethereum, the second largest cryptocurrency by market cap, followed a similar weekend pattern and was likely to be flat. ETH is down slightly around USD 3,200.

The recent performance of the crypto market has been largely in line with the major stock markets, which have also fallen. The tech-focused Nasdaq closed Friday’s trade down more than a percentage point.

The S&P 500 and Dow Jones Industrial Average also fell as investors continued to process a vortex of historic events that could send the global economy into recession.

Over the weekend, Ukraine was simultaneously bracing for new Russian attacks on cities in the southeast of the country. Meanwhile, the European Union continues to discuss banning Russian oil and gas.

In its April 8 weekly review of global economic trends, First Republic Bank said the macroeconomic backdrop is likely to worsen before finally recovering.

The bank also noted the rise in energy prices stemming from the invasion, had affected prices in almost all sectors of the economy.

“Given rising costs and geopolitical conflicts, we believe inflation will pick up further in the coming months,” the bank wrote.

DiPasquale said broader concerns over the various current sentiments could weigh the crypto well below the USD 40,000 threshold.

“We’ll see a reaction around USD 37,000 and USD 32,000, but BTC needs a catalyst to maintain its bullish momentum ahead of macro concerns, such as more rate hikes and changes in monetary policy,” said DiPasquale.

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