Bitcoin price dipped below $40,000 in the early weekend hours and continued to fall amid rising tensions on the Ukraine-Russia border and continuing inflation fears. At the time of writing, BTC is changing hands at $39,242.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price plummeted, nearing $38,000 but then recovered to $39,000
Bitcoin price today plummeted without breaking in the past 24 hours, causing the cryptocurrency market to burn red. This morning, the price per Bitcoin traded at $38,603, down 3.7%. In the past 24 hours, Bitcoin price traded as low as $38,014 and highest recorded at $40,148.
According to CoinMarketCap, Bitcoin traded during this period was $18.1 billion, with a market capitalization of $735 billion.
Bitcoin and the virtual currency market have just experienced an enormous plunge. The reason is that the US announced the highest inflation rate in the past 40 years. In addition, the geopolitical situation in Europe and Ukraine also has a significant impact on the prices of risky assets such as cryptocurrencies. According to OANDA senior market analyst Edward Moya, the threat of war in Ukraine has led investors to go into the full risk-free mode, with Bitcoin being affected.
The drop came as US intelligence reported that Russia had decided to attack Ukraine. Meanwhile, investors were eyeing the possibility of a rate hike by the US Federal Reserve. The expert sees the following bitcoin support line at around $35,000.
Bitcoin was previously considered a safe-haven alternative to gold. But the current developments make many opinions doubt this, making the future of Bitcoin still quite unclear. Experts say the regulatory framework will be a positive for crypto in the long run. However, the market remains unclear whether current governments are crypto-friendly.
The plunge of Bitcoin dragged a series of other large-cap altcoins down. Specifically, Ethereum down 4.1%, Binance Coin down 4.3%, Ripple down 4.8%, Cardano down 5.5%, Avalanche down 6.6%, Dogecoin down 2.42%…
The total capitalization of the cryptocurrency market plummeted to $1,777 billion, or a 3% loss.
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