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Tuesday, February 27, 2024

Traders Expect Bitcoin to Fall to 2017 Levels | Multiple Reasons 

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Bitcoin and Ether were down in Tuesday’s trade. There are various reasons for price falls, such as economic uncertainty. It shows red in Bitcoin and Ether. Bitcoin was recently trading below $22,000, a decrease of nearly 2 percent over the previous twenty-four hours. 

Bitcoin fell for eight consecutive days. It is the largest cryptocurrency market, which has lost about 30% of its value. It is risky to test the previously unimaginable support level of around $20,000, roughly where it was in 2017. Ether, the second-largest cryptocurrency by market capitalization, was trading at approximately $1,200, nearly unchanged from Monday.

SOL and XLM were recently up more than 5 percent after going down on Monday. WBTC and TRX continued to decline, with TRX at one point down by almost 13 percent. Cryptocurrency investors are anxiously waiting for the latest interest rate hike by the U.S. Central Bank. There are 75 basis points of inflation, so it needs to check this inflation. It is a four-year high because of new policies.

Prices of S&P 500, Dow Jones Industrial Average, and Nasdaq were flat on Tuesday. There is market uncertainty so prices of Gold were also down. Data on Tuesday also reveals that crypto tracked a loss of more than $1 billion in 24 hours. 

There is a state of liquidation, where exchange removes a trader’s leveraged position owing to a partial or entire loss of the trader’s initial margin. It takes place when a trader cannot meet the margin requirements for a leveraged position.

There are also reports that the Securities and Exchange Commission (SEC) was considering whether insider trading was adequately covered. It comes at a time of intensified analysis of the decline of the TerraUSD stable coin and cryptocurrencies. Moya of Oanda was doubtful about crypto’s prospects. 

The prices of the Japanese currency yen versus the dollar have also reduced to the lowest level since 1998.

Euro also decreases by 15% which becomes one of the worst-performing global currencies. It occurs because the U.S. announced less-than-expected inflation figures for May last week. It showed inflation rising 8.6 percent year-over-year. 

Sophie Lund-Yates, the chief equities analyst at Hargreaves Lansdown, explained that there is fear in the investors’ minds. The primary worry is how to combat increasing inflation. Traders and analysts are not sure about crypto. Bitcoin prices may fall to 2017 highs below $20,000 before long-term purchasers return. 

Bradley Duke, co-CEO of crypto exchange-traded product provider ETC Group, revealed that bitcoin might revisit 2017’s levels with “$20,000” serving as the “next significant support.”

He also commented that the crypto market is in a state of great fear because the last comparable period of sustained pessimism dates back to March 2020. Many investors referred to a fall in bitcoin’s price as a worldwide stock market sell-off. 

Mikkel Morch, executive director of crypto/digital asset hedge fund ARK36, remarked, “The global economic situation is becoming increasingly difficult to navigate for investors in all types of markets, so it is not surprising that bitcoin is also suffering growing downward pressure.” Cryptocurrency has become a global macro asset.

Sum Up

Crypto investors have an eye on the market. The Securities and Exchange Commission (SEC) also wants to know the prime reason for Bitcoin prices to fall. There are various reasons for these prices. There is no need to panic and invest smartly to get more profits. People invested in cryptocurrency to make more profits. It is necessary to check the current market trends so there is less loss in profits.

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