On Monday, Bitcoin fell more than 7% to its lowest level in six months, as worries of a Russian attack on Ukraine prompted risky assets throughout the world to sell-off, reports CNBC. Its high time for investors who have invested in crypto market. Their situation can be considered worse now.
After a severe sell-off last week, Bitcoin is starting the week with a small decline in price. According to CoinMarketCap, the world’s largest cryptocurrency fell 0.31 percent in the last 24 hours to $35,000 on January 24. According to the source, approximately $1.5 billion in Bitcoin trading positions were liquidated over the weekend. This was the world’s largest cryptocurrency’s poorest weekly performance in nearly eight months.
The Bitcoin Boom!
The Bitcoin boom has been fueled by the US Federal Reserve’s policy rate hike, which came earlier than predicted. Investors are waiting for the Fed’s signal during the US Federal Reserve meeting on January 25-26. To combat persistently high inflation, the central bank is set to tighten policy at a considerably faster pace than expected a month ago, according to a Reuters poll.
The largest cryptocurrency is down 7.4% at $33,650, its lowest level since July 24, and has lost 50% of its value from its all-time high of $69,000 in November.
In one of the clearest indicators yet that American authorities are ready for a strong Russian intervention in the region, the US State Department announced on Sunday that diplomats’ family members would be ordered to leave Ukraine.
Fear Of Violence
Fears of violence have hammered global stock markets, while the currency and oil have strengthened.
Smaller cryptocurrencies, which tend to move in tandem with bitcoin, also slumped. The second-largest Ether fell 11% to $2,253, its lowest since July. 28.
The RSI has reached its lowest in 2 years which indicates that BTC is in the extreme oversold zone. All these factors amount to a certain reversal in the crypto markets,” said WazirX trade desk.
Ether price, however, jumped in the last 24 hours. The world’s second-largest cryptocurrency price climbed 0.36 percent to $2,432 on January 24, according to CoinMarketCap. On Ether price, WazirX trade desk said, “Ethereum slid to $2,300 and other Altcoins followed suit taking a huge beating.