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On Monday, the price of the world’s leading cryptocurrency by market cap dropped to its lowest in more than a month. The price of Bitcoin fell by 4.2%, reaching $38,580; meanwhile, the global crypto market on the very same day fell as much as 4% to $1.9 trillion, as per the data from CoinGecko.
The flagship currency could be seen struggling alongside risk assets for months. The prices oscillated mostly in the range of $35,000 to $45,000 as the Federal Reserve began hiking interest rates amidst high inflation.
Though Bitcoin could be seen stuck in a tight trading range, HODLers, individuals who hold on to an asset even after waves of high volatility, dominated the asset class.
The share of Bitcoin in the market has come down to 40% from 65%, which was at the start of 2020, as per the data from CoinMarketCap.
The dips in prices, however, didn’t seem to shake the belief of Bitcoin bulls in the asset class as the price predictions of $1,00,000 are still doing rounds.
Nonetheless, at the time of writing, the price of Bitcoin was standing at $41,316.78, up 1.22% in the past 24 hours. On the other hand, according to the pricing from CoinGecko, the global crypto market gained about 2% as of Tuesday, reaching $1.98 billion.
Also Read: Commentary: The Bitfinex Trading Team’s Market Commentary On Bitcoin
Commenting on the recent price drop of cryptocurrency, the Bitfinex Trading Team talks about the possibilities of stagflation. Given below is the full commentary by the team on Bitcoin:
“Bitcoin has retreated below US$40,000 as traders appear to be waiting on the sidelines, amid slowing volume. Investors have become increasingly concerned with the lethal combination of rising inflation and slowing growth – otherwise known as stagflation – afflicting economies. That, coupled with elevated levels of private debt accumulated during the pandemic, has had a significant impact on risk asset valuations. While bitcoin is often correlated with risk assets, it is important to recognize its increasing usage, as evidenced by the growth of the Lightning Network last year.”
Bitfinex is a leading cryptocurrency exchange that offers asset trading services at a global level to crypto traders. The crypto exchange, established in 2012, has achieved quite a lot in the crypto space over the decade. The Bitfinex Trading Team has years of experience in the cryptocurrency market and is quite passionate about the industry.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
