Fourth-week consecutive drop in BTC prices!
In the last month, bitcoin was the only cryptocurrency to reach the price level of $69,000 on November 10. However, today, it is lowered by 30% compared to the highest value of bitcoin. It all happened because of several things. First, some countries are looking forward to banning cryptocurrency bitcoin because of its high-risk factor. Also, countries like India are looking forward to regulating cryptocurrency movement to use the technology Blockchain, which is the base for transactions. Also, a fundamental reason why the bitcoin prices are decreasing Consecutively is the failure of United States negative sentiment to control the inflation acceleration in the country. Also, the United States believes that the digital asset market will suppress the financial field market, and therefore, they also want to regulate the same.
However, the USA is also looking at bitcoin as an inflation hedge. Investors and another considerable place in the market believe that bitcoin can act as an inflation hedge for the country and help control inflation. Also, the main reason behind this belief is the fix the supply of bitcoin. Bitcoin is now increasing in the market; there is a fixed supply of 21 million bitcoins which is nowhere near being reached. The bitcoin prices are like 4.4% on Friday and reach $50,101. It was about 10% lower in the past week, and it is believed to crash further. Also, some analysts say that purchasing the deep when bitcoin prices are lowest in a few weeks is not the right move for me. If the investors keep purchasing the data, it is believed that the financial market is less likely to recover at its fundamental levels.
What led to the decline of BTC prices?
When bitcoin prices hit the all-time highest level of $69,000, many investors believed it to reach a further price of $75,000. However, the situations were not likely to remain the same, and bitcoin prices started to decline. One of the earliest reasons was that the Twitter CEO said it was not the right time to invest in bitcoin. Therefore, some market investors were shaken by his statement and withdrew their bitcoin investment. Due to the massive disinvestment in bitcoin, the prices of bitcoins started to decline sharply.
After that, there was news about spreading the new Coronavirus variant through sites like this system . The new Coronavirus variant is named Omicron, and experts found it in Africa for the first time. This virus is entirely different from the others that we have seen yet. One of the essential things that led to increased panic among investors is that the vaccine cannot prevent people from catching up this virus. Therefore, the investors believe that the world economy will shut down just like it has done in the past. In 2020, due to the coronavirus pandemic, the whole world was shut down, and economic activities were closed entirely. Therefore, the economy was about to get into recession again. Because of the early discovery of the vaccine, the world has prevented it. However, now, the chances are again rising for the downfall of the economic system in the whole world. Hence, it is proved. If there is small news about the collapse of the global ecosystem, the investors tend to withdraw their investment.
Later on, the bitcoin prices started to recover shortly. The dip in bitcoin prices was about 25% because of discovering a new army coronavirus. It was one of the most important reasons because of which the prices of bitcoin reached their all-time highest price of $69,000. However, due to the increasing prices of bitcoins, it saw the opportunity to increase the investment in its bitcoin city. Therefore, it purchased an additional 157 bitcoins. As a result, it led to an increase in bitcoin prices in November.
However, the prices are not likely to remain at the same place. The prices of bitcoin inventories went down as $47,000 after the new bill by the United States Federal reserve authority. The Federal Reserve said they would regulate the cryptocurrency market in the United States of America and the brokers have to report everything to the authorities. Therefore, it led to a decrease in bitcoin prices, and it is not likely to recover to the same level very soon.