The Bitcoin price had to accept another downward slide and fell below the $ 40,000 mark. Bitcoin price had previously surged above $43,000 and then suddenly plummeted sharply down to a current price of $ 35,000. What were the reasons for the rapid descent in the last few hours? Let’s talk about 3 probable causes for this Bitcoin crash 2022.
#1 Bitcoin Crash 2022 – Failure to Break 43K level
The Bitcoin price briefly rose above $43,000 yesterday. However, the joy was short-lived. The price dropped again particularly quickly. First, it went down to $41,000 where a brief consolidation occurred. When it appeared that the support level wouldn’t hold, the price fell below $40,000 again.
With the short “fakeout” the resistance at $43,000 could not be broken again. Investors reacted with sales. At the end of December, the upper resistance at $52,000 could not be broken and Bitcoin then experienced the next crash at the beginning of January.
#2 Tighter Monetary Policies in the US
The US Federal Reserve’s plans to raise interest rates are having a major impact on the weak Bitcoin price. More and more speculative investors seem to be withdrawing from the markets at the prospect of higher interest rates. The most important cryptocurrency has benefited greatly from the low-key interest rates in recent months.
The increase in key interest rates will ensure a different monetary policy in the coming months. Like other assets, Bitcoin first has to adapt to the new circumstances. With the launch of various BTC financial products on the stock market, the cryptocurrency is entering an important adoption phase this year. The setbacks are therefore not surprising.
#3 New Bans and Regulations
Bitcoin has to deal more and more with regulations in other countries. Currently, Russia wants to ban cryptocurrencies.
Due to the sharp increase in the proportion of institutional investors in 2021, Bitcoin will be hit harder and harder by such regulations. It remains to be seen whether the cryptocurrency will become more immune to such new bans and regulations in the future or whether it will simply adapt more.
Now is an ideal point to get in cheaply. Buy Bitcoin on crypto exchanges Binance , Coinbase , Kraken and Bitfinex !
Recommended posts
-
Shiba Inu Price Prediction: How High can SHIB Price reach by 2030? -
Bitcoin Price FAILED to Break 38K Resistance, will $BTC reach 30K? -
Bitcoin Price Back Down! Will the Next Correction bring prices to 30K?
-
PEPE Coin Price to Reach $5 in the Next Seven Days? -
Bitcoin Crash – Here are 3 things that can SAVE Cryptos -
Can Bitcoin reach 100K soon? Here’s what’s needed for that to Happen… - Why Is Bitcoin Price Going Up?: Three Key Factors
- Crypto Crash in 2022! Here’s why Bitcoin and other Altcoins Collapsed
-
Bitcoin Price Consolidates! Did the Bullrun END for $BTC?
-
What will happen to Bitcoin after the crash? Probably a BOOM? -
Crypto Crash! Will 2022 be a Crypto Bear Market? Here’s what we Know
-
Correction Day! Should you Buy $BTC before Bitcoin Price reaches 50K? - $BTC Price reaches Strong Resistance – Will a Bitcoin 40K Price Happen?
-
Why is Crypto UP? Keep an Eye on THOSE Cryptos to BUY!
- Bitcoin Price $BTC above 38K! Bear Market Over? Look at US Equities!
- CONSERVATIVE Price Prediction – How High can Bitcoin reach by 2025?
- Ethereum Price enters a RED ZONE – will $ETH Crash to $1,700?
-
Merry Christmas! Bitcoin Price Above 50K! What’s next? -
Bitcoin Price falls below $27,000 again – is the Crash CONFIRMED?
You might also like
More from Crypto
Bitcoin Price Prediction Before 2023 Ends
Approaching the end of 2023, Bitcoin has experienced a remarkable recovery, surging by 120% from its starting price and reaching …
Cardano’s Innovative AI Chatbot: Girolamo
Meet Girolamo, Cardano's super-smart chatbot! It's like a beta test party on CardanoGPT Discord – chat with Girolamo, get quick …
IOTA News: How High Will IOTA Price Go?
Analyzing the IOTA reveals a mix of trends. This article is all about the IOTA News and how high will …
