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Bitcoin is now at $44,180.99 dropping 22% in a week

Bitcoin

Bitcoin falls to $44,180.99 while failing to keep the price above $50,000 for the second day in a row. The cryptocurrency dropped 22% this week, making it the worst weekly fall since March 2020. Bitcoin dropped 15% on Monday and Tuesday. This was the biggest two-day correction in the last 11 months. The cryptocurrency seemed overheated and required correction.

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According to analysts, there are a few factors that led Bitcoin to this situation:

  • Elon Musk may have triggered the sell-off on Saturday when he tweeted that bitcoin and ether prices “seem high”. Since he has been one of the major investors in bitcoin lately, his words can be very influential.
  • The price fall corresponded with a wider withdrawal from the more expensive parts of financial markets, like tech stocks and government bonds.
  • A lot of investors are afraid regulations are fixed to tighten around the digital currency market. Janet Yellen, the US Treasury secretary said once again on Monday she has concerns regarding the misuse of bitcoin by criminals at the DealBook DC Policy Project. She also added that the amount of energy needed to mine the currency “is staggering.”
Bitcoin

Bitcoin enthusiasts are not concerned by this huge dropping in price. They think it is normal any kind of market draws back after increasing so rapidly. In fact, they also believe that this is the right moment to invest. 

“We could well go from $45,000 to $42,000. But I think that $45,000 to $42,000 level at the moment is rock solid. People are very happy for the price to be there because they get to buy it there. It’s just how the market works,” Matt Blom, head of trading at Nasdaq-listed crypto exchange group Diginex, told Insider.

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