Over the weekend, the first cryptocurrency fell in price by nearly $4.000 more.
The plunge in Bitcoin’s price, which began on Friday morning, continued over the weekend. As of 5 p.m. (GMT+2) Monday, December 24, the first cryptocurrency was trading around $36.600, according to CoinMarketCap. Friday night’s drop was about 10%. Bitcoin’s total capitalization fell to $639 billion, with total liquidations in the futures market exceeding $397 million in the last 24 hours alone, the Coinglass service reported.
Over the past seven days, BTC lost more than 20% of its value. The Fear and Greed Index is at the level of 13, which indicates a panic mood among market participants. The cryptocurrency market still follows the U.S. stock exchanges — over the past five days, the S&P 500 quotes sagged by 6.66%.
Along with the cryptocurrency market fall, stock quotes of public crypto companies also went down. Losses of some of them in the last five days:
- MicroStrategy (MSTR) — 29.4%;
- Coinbase (COIN) — 23.36%;
- Grayscale Bitcoin Trust (GBTC) — 21.37%;
- Robinhood (HOOD) — 19.13%.
Business Insider Australia predicts a long-term decline of the entire cryptocurrency market. Analysts call a sharp tightening of the Federal Reserve’s monetary policy as the main reason. Among other factors is pressure from regulators and investors’ doubts about the reliability of crypto technology.
George Paliani, CEO of CoinsPaid Media, shared his opinion about the further fate of the cryptocurrency market:
“In the short term, BTC may drop below $30.000. The biggest pressure on the price is an outflow of funds from markets, provoked by news about the upcoming stoppage of the Fed’s printing press. Technical indicators point to the fall. Investors are scared, and uncertainty is prevailing. It’s hard to predict how long this period may last, but the general trend is to expect a prolonged “crypto winter”.”
