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The king of cryptocurrency is suffering another meltdown at a 3.3% drop in just 24 hours. Bitcoin is currently trading at around $38,210 which is the lowest so far since March of this year when US President Joe Biden signed an executive order on crypto regulations.
Although the BTC price went up at $40,800 on Tuesday, it slid momentarily afterward.
Suggested Reading | Bitcoin (BTC) Dips Below $40,000 Over Ukraine And Possibility Of Fed Rate Hike
Amazon Denies Speculation About Accepting BTC Payments
Amazon’s retraction against the mass speculation that the retail giant will be accepting BTC payments was the main causative factor of the sudden drop. Ether was even pushed further down as well.
BTC price went straight up when Amazon announced a job advertisement connected to crypto. However, a couple of hours later, an Amazon spokesperson denied claims that Bitcoin will be added as a payment method this year.
Bitcoin peaked at around US$40,545 as the investors rushed with their bets with the speculation of a bearish stride. There were over $950 million of crypto shorts liquidated which is the highest since May of the current year.
The Multi-Wave Correction
The volatility experienced by Bitcoin and all other cryptocurrencies is referred to as a multi-wave correction. It peaked around April and it’s expected to rebound to a maximum of $45,000 before it slides again.
The rollercoaster ride of BTC is part of that correction. The crypto industry suffered a massive decline after reaching a record high of $65,000 because of a bombardment of environmental and regulatory issues.
BTC total market cap at $751.41 billion on the daily chart | Source: TradingView.com
This week’s frantic moves of BTC and other tokens are expected. Meanwhile, investors are looking at the next big wave that can break the BTC out of its sob trading range of a meager $30,000 to $40,000 in the past few months.
Suggested Reading | Dogecoin (DOGE) Struggles, Drops 9% After Elon Musk Twitter Buyout
Where’s Bitcoin Headed?
The risk level is a bit higher this week because the Federal Reserve is set to announce its decision come Wednesday.
More so, news on the investigation regarding alleged bank fraud committed by Tether executives has put the crypto space hanging.
BTC investors have been grappling with inflation, environmental, political, and economic concerns, especially with the Fed. The inflation rate that happened in March this year is by far the worst inflation rate compared to what transpired in 1981.
Multiple factors combined have been impacting volatility in both the stock and crypto markets.
The current price range is said to be a middle ground for Bitcoin as its performance will determine how everything will play out in the next few days. Would it be bullish or bearish? BTC performance at this range will give people a clue about where it’s going.
Featured image from The Facts Chronicle, chart from TradingView.com
