Another Bitcoin Plunge, Will This One Stick?

 

3 Reasons Behind the Crypto Crash 

Yahoo Finance provides 3 Reasons Behind the Crypto Crash 

The Fed

First weakness in plain vanilla equities, in part brought about by Federal Reserve taper talk, has investors spooked by speculative assets. “that the US Federal Reserve’s tapering could burst the Bitcoin and crypto bubble.” 

Navellier said the Fed’s tapering “should create a correction in risk assets, of which Bitcoin is a part.” He also warned that Bitcoin’s price could drop below $10,000.

Covid-19

The Omicron variant outbreak and the uncertainty surrounding its severity – and the efficacy of vaccines, which is still to be determined – also has investors running for the hills.

The Holidays 

Also, ‘tis the season. Many investors seeing the year winding down are looking to lock in gains and take money off the table. After all, even with recent decline, BTC is still up 66% year to date (Bitcoin started the year around $29,400)

Where do we go from here? Always hard to tell. For sure winter is coming. But is it crypto winter?

If I were to guess, I would say that the severity (or not) of Omicron could be a big determining factor.

Bitcoin Price Tumbles After Wall Street Selloff

The Wall Street Journal reports Bitcoin Price Tumbles After Wall Street Selloff

Bitcoin and other cryptocurrencies are notoriously volatile and often plunge for mysterious reasons. Disquiet in the stock market over the new Omicron variant of Covid-19 and the Federal Reserve’s response to inflation might have played a role.

Another possible factor accelerating the bitcoin selloff was the unwinding of heavily leveraged crypto derivatives, said Noelle Acheson, head of market insights at cryptolender Genesis Global Trading. She pointed to a large sell order that might have triggered margin calls and liquidations for investors.

Higher rates make holding speculative assets such as bitcoin less attractive. When the Federal Reserve raised rates in 2017 and 2018, bitcoin prices fell dramatically, referred to among crypto aficionados as a bitcoin winter. The coin took off again during the pandemic. Bitcoin hit an all-time high on Nov. 9 of $67,802.

1 2 3
View single page >> |

Like these reports? If so, please  more

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Joel Santiago 1 month ago Member's comment

No it wont stick. because it was created by the wealthy oil families of the middle east to give them liquidity to buy billions of dollars worth.