Bitcoin price plunges close to the ‘first decade of life’ raising fears of catastrophic sell-off

BITCOIN has plummeted close to the dreaded “cross” phase amid fears of a mass sell-off.

It has collapsed since the US Federal Reserve pulled out massive liquidity, which has been pumped into markets since the coronavirus pandemic broke out.

Fears are also growing that the Fed could further cut support for the US economy, which is bad news for riskier assets like cryptocurrencies.

Today, the Bitcoin price briefly fell below $40,000 for the first time since September.

At the time of writing, Coindesk shows a drop in the price of bitcoin, the largest cryptocurrency by market cap has changed hands at $40,834, based on CoinDesk valuation, down 12% so far in 2022 — one of the worst starts Bitcoin’s most ever in a year.

Naeem Aslam, principal market analyst at Avatrade, said: “The main culprit behind the drop in crypto prices is the Fed’s decision to drain the massive amount of liquidity that has been pumped into the markets since since the coronavirus pandemic broke out.”

Kraken’s research shows that many of Bitcoin’s previous death crosses, including those seen in 2014 and 2018, coincide with “either a sell-off in the following days or a continuation of a macro downtrend.” confirm a bear market”.

But this does not always happen.

Last time for example, it happened on June 21 after China continued its harsh crackdown on cryptocurrency mining and trading.

That time it was settled in a fresh bull run.

After the December crash, Bitcoin was trading around $50,000.

The value of Bitcoin has fluctuated wildly since its launch in 2009.

5 Risks When Investing in Cryptocurrencies

The Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.

  • Consumer protection: Some crypto-based high-return promotional investments may not be subject to regulation beyond anti-money laundering requirements.
  • Price volatility: Significant price volatility in cryptocurrencies, combined with the inherent difficulties in valuing cryptocurrencies reliably, puts consumers at high risk of loss. The Bitcoin Up app is a great way to take advantage of the current
    bitcoin market volatility.
  • Product complexity: The complexity of some crypto-related products and services can make it difficult for consumers to understand the risk. There is no guarantee that cryptocurrency can be converted back to cash. Converting a cryptocurrency back into cash depends on the demand and supply available in the market.
  • Fees and charges: Consumers should consider the impact of fees and charges on their investment, which may be more than the impact of fees and charges on managed investment products.
  • Marketing materials: Companies can overstate product returns or minimize the risk involved.
Bitcoin Drops After Federal Reserve Announcement
Bitcoin Drops After Federal Reserve AnnouncementCredit: Virgin


DevanCole is a Dailynationtoday U.S. News Reporter based in London. His focus is on U.S. politics and the environment. He has covered climate change extensively, as well as healthcare and crime. DevanCole joined Dailynationtoday in 2021 from the Daily Express and previously worked for Chemist and Druggist and the Jewish Chronicle. He is a graduate of Cambridge University. Languages: English. You can get in touch with me by emailing:

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