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- Not just Bitcoin, almost every other cryptocurrency is showing the same behavior.
- The overall crypto market has seen approximately a 12% downfall in 24 hours.
- Bitcoin is trading at below approximately 45% from its $68,700 all-time high, and the global crypto market is also almost 48% below its $3 trillion mark.
The whole cryptocurrency market is at a dip, talking about the most talked-about crypto; it also started dropping since Thursday and still has not recovered. The same scenario has been created in every other global financial market, be it stock or equity market. At the time of writing, Bitcoin is priced at $35,706.
Long positions might be responsible for this current ‘position.’
Analysts have various reasons regarding the drop specifically for Bitcoin. Ben McMillian is the founder of IDX Digital Assets; he said about fall that it’s because of leveraged long positions. These have made the situation worse, of sell-off in markets around Asia on Friday.
He further says it’s not new for bitcoin, and digital gold currency has always been this case. People assuming $40,000 to be a primary support level have now turned into resistance, and the price may see more downfall across the weekend.
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Fair correlation of Bitcoin with traditional markets
Apart from selling-off, Bitcoin has an all-time case of going in sync with global markets. As the whole market acts on sentiments, the crypto market behaves the same. Moreover, the crypto market has been seen to have more negative impacts on sentiments.
Research head at IntoTheBlock, Lucan Outumuro, said that the correlation between traditional and crypto markets worsens when some companies with poor technology do not perform well, creating macroeconomic fears.
Markets Negative Sentiment
As mentioned, BTC follows the market and has faced consequences of negative sentiments in the last weeks for various reasons, making digital money. Analyst at Quantum Economics, Jason Deane, said that sentiments get incited by uncontrolled feared news.
However, Jason is positive for the long-term, thinking that the price will continue to go down for a short time. It will take a break when the chaos will calm and move back to its actual position.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
