May 17, 2022

Bitcoin Falls Below $40,000 And Drags Down Ethereum And Dogecoin | Ben Spain

4 minutes of reading

Major currencies continued to slide Thursday night, as the global cryptocurrency market capitalization dipped 2.3% to $2 trillion.

What has happened

Bitcoin (CRYPTO:BTC) was trading 2.5% lower at $39,856.72 after a 24-hour tracking period. So far this week, it has dropped 5.7%.

Ethereum (CRYPTO: ETH) fell 2.9% to $2,912.60 after a 24-hour follow-up period. Over a seven-day follow-up period, it has lost 9.5% of its value.

cryptocurrency meme Dogecoin (CRYPTO: DOGE) lost 3.4% to settle at $0.16 over the course of 24 hours. During the week, it is down 8.7%.

Shiba Inu (SHIB) it was down 3.1% to $0.000027 in 24 hours. During the week, it has plummeted 12.4%.

The three coins that benefited the most during that 24-hour period were Cosmos (ATOM), Klaytn (KLAY) y Celsius (CEL), according to data from CoinGecko.

Because it is important

US Treasuries stalled on Thursday. The 10-year bond yield was at 1.8325%, down from a two-year high of 1.902% seen the day before, according to a information the Reuters.

This Treasury bond pullback could be good for the apex cryptocurrency, he says Edward Moya, OANDA Senior Market Analyst.

“Cryptocurrencies remain the perennial risk asset and continued decline in Treasury yields would be good news for Bitcoin,” Moya wrote in a note.

In another order of things, the central bank of Russia, the Bank of Russia, has asked that they be prohibited cryptocurrencies, while Meta Platforms Inc (NASDAQ:FB) plans to allow users of its Facebook and Instagram social media platforms to mint and sell tokens non-fungible.

The Russian ban could cause problems for Bitcoin, according to Moya.

“The Russian ruble has been falling steadily for the last two decades, which has made Bitcoin an attractive investment for many Russians in recent years. Russia has been one of the top three countries for Bitcoin mining, so if this proposal is approved, Bitcoin could drop below the $40,000 level,” the analyst explained.

Bitcoin’s profit percentage has fallen to levels not seen since July of this year and currently stands at 68.7%, according to Delphi Digital, an independent cryptocurrency research firm.

Bitcoin Offer Vs. Percentage Offer in Benefits – Courtesy of Delphi Digital

“This suggests that more than 30% of bitcoins have changed hands in the last year, when the cryptocurrency was trading above current prices, and that these entities are holding on to an unrealized loss,” Delphi wrote in a note. sent by email.

Bitcoin posted an intraday low of $40,994.23, while ETH touched a low of $2,994.93 in a similar period.

The trader cryptocurrency company based in Amsterdam, Michael van de Poppe, tweeted that it was important for Bitcoin to stay within the $42,400-42,700 range because there is an “instant nuke on the other side of the range.”

Despite Bitcoin’s 38.4% drop from its November highs, the coin’s 5-year yields are 47.5 times higher than the S&P500 index over the same period, and 84.5 times higher than those of gold, according to the content platform and financial market Sentiment in a tweet.

On the other hand, Marcus Sotiriou, UK-based digital asset broker analyst GlobalBlock, shared a series of data from the investment firm in digital assets CoinShares and said there was $73 million in digital asset investment product outflows last week, making it the fifth consecutive week of outflows, but the outlier of this trend was Solana (SOL).

screenshot 2022 01 21 at 7.04.43 am

Weekly Cryptocurrency Asset Flows – Courtesy of CoinShares

“Solana is an anomaly with $5.4 million in inflows last week, while Bitcoin funds have had outflows for 4 of the last 5 weeks. Total outflows from the entire cryptocurrency market during this period amount to $532 million, which translates to the steepest outflow figure since 2018,” Sotiriou noted.

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Bitcoin Falls Below $40,000 And Drags Down Ethereum And Dogecoin | Ben Spain