Bitcoin Falls Below $40k Temporarily Before Recovering Back to $41.5k
Bitcoin is currently engaged in some serious tussle between the bulls and the bears. The largest cryptocurrency by market capitalization suffered another considerable price loss earlier in the day. Despite the recovery afterwards to $41.5k till press time, the bearish clouds still hang over the digital currency’s fate. Altcoins on the other hand posted even deeper losses over the weekend as they followed BTC into the abyss. More on that later on.
In other news, popular Dutch trader and analyst Michael Van de Poppe predicts that the Bitcoin price index can fall further. He posted that the investors believe that there is some potential left in this bearish move and therefore they want to swoop in when prices drop even further. He believes that fear is accelerating the further drop of the digital currency. More on that later on.
Billionaire investor Bill Miller is betting big on Bitcoin. The seasoned financial player has announced that he has invested more than 50% of his net worth into the digital currency at the moment. He previously considered himself as a Bitcoin observer, but now after considering the incredible potential of the sector, he is now a full-fledged Bitcoin bull and has allocated half of his net worth into Bitcoin.
A Spanish parliament member believes that the chaotic situation in Kazakhstan means that the government can try and lure some of the crypto miners to the Iberian country. Kazakhstan is seeing more than a week of violence in which hundreds of protestors and government officials have been killed. As a result of this street violence, internet and power services have been sabotaged in the country and with it, the big mining industry within it.
According to a recent Bloomberg research, Binance CEO Changpeng Zhao is the richest individual in the crypto scene and is also going strong within the larger high net worth list. The young Hong Kong techie and crypto pioneer is now worth a massive $98 billion according to this research and growing. Binance remains one of the largest crypto exchanges in the world but is now facing increasing regulatory backlash.
The police in Kosovo, a tiny Balkan country, are rounding up cryptocurrency mining equipment. The move comes after the energy-starved nation is facing outages among reports of excessive crypto mining going on under the radar.
Bitcoin Falls Below $40k Momentarily
Bitcoin had a slow weekend overall but on Monday, things started to heat up again. The cryptocurrency fell below $40k before making a quick recovery. However, the bears may be happy with this move even though the move downwards couldn’t complete itself.
The last 24 hours started with Bitcoin at around $42.5k. It trended slightly downwards but stabilized around the $42k valuation around midnight. After that, the digital currency remained lifeless for around 12 hours. At 11:50 AM in the afternoon, Bitcoin began to register a price drop once again. It first moved to $41k and then $40k. Finally, in a swift move, the cryptocurrency revisited level below $40k before recovering quickly out of it. At press time, it is trading at $41.5k.
Moving forward, Bitcoin is currently facing a long-term price squeeze from the bears. This is very different from earlier price drops as the index has dropped value consistently and has continued dropping during this time. Technically, the cryptocurrency has no floor at the moment that is well established and it could go further down. However, a move below $40k could be devastating for the bulls and it will be hard for them to recover if the digital currency makes a decisive move above or below it.
The total market capitalization of Bitcoin was around $780 billion at press time and its share of the proceedings were 41%.
Altcoins Post Losses
Other cryptocurrencies aka altcoins posted even bigger losses than Bitcoin’s. Ethereum (ETH, -5%), Solana (SOL, -8%), Cardano (ADA, -6.5%), Terra (LUNA, -6.5%), Polkadot (DOT, -7%), Avalanche (AVAX, -8.5%), Dogecoin (DOGE, -7%), Shiba Inu (SHIBA, -8.5%), Polygon (MATIC, -5.5%) and Uniswap (UNI, -7.5%) all posted big losses.
In Other News….
Michael Van de Poppe Believes Bitcoin Can Fall Further Before Recovering Later On
Major Dutch crypto analyst Michael Van de Poppe has painted a dark picture of the Bitcoin price index in the near future. The main crux of his point of view is that since the market is working its way down consistently, many investors believe it could fall further and thus, that could mean they are still waiting for the dip to buy.
This is why he believes that the digital currency can continue to post losses in the short-term. In the long-term however, de Poppe believes that Bitcoin can still make another comeback before the crypto winter actually announces itself.