Bitcoin News

The crypto market Sees $800 million liquidation as The price of Bitcoin (BTC) drops below $42,000

In 2022, the crypto market experienced its first significant liquidation event, with the majority of the market bleeding in double digits. Bitcoin plummeted below the $43,000 support barrier, trading in the sub-$42k range, and hitting a fresh three-month low of $42,761. Ether (ETH) plummeted to a monthly low of $3,432 after losing $3,500 support.

The crypto market slaughter wiped away approximately $300 billion in market capitalization and resulted in the liquidation of $800 million in leveraged holdings. With $36.91 million in total liquidation, Bitcoin took the lead, followed by Ether at $20.88 million and Solana (SOL) at $1.88 million.

The Dread and Greed Index has turned red, suggesting that the market is experiencing acute fear. Bearish feelings also dominated social media, with “dip” becoming the top crypto term of the day. Although there is a lot of selling pressure, many believe now is a good time to purchase the drop.

“Polarization amongst the trading crowd is upon us, following the latest #dip. And that is what the #1 rising word in #crypto circles is. It also appears the common notion is that it’s #buy or #buying time, but with the interest in #sell rising as well.” — Santiment (@santimentfeed) January 6, 2022

The latest Bitcoin price drop corresponds to the gold market, which has recently reached new lows. With the Omicron model already having a global influence, BTC is anticipated to repeat its success from last year. Even last year, BTC started slowly and had high correlations with gold and the S&P 500 index, but within months, Bitcoin and cryptocurrencies had broken out to new highs, resulting in a negative correlation with the traditional market.

Market analysts believe Bitcoin will not remain at present levels for long, and that it will either increase to $47,500 or revisit its December lows of $41,762 before bouncing back.

“$BTC update: Don’t see a reason why #Bitcoin should stay at its current level. Expecting a sweep of Monday’s highs at $47,609”

“or a retest of December 4 swing low at $41,762.” — Akash (@Mangyek0) January 6, 2022

At the time of writing, the top cryptocurrency is attempting to break through $43,000 as support. Then, and is now trading at $43,100. A 10% market loss did not surprise professional traders. Of course, who see up to a 30% pull back in a bull market as a typical market cycle to climb to new highs.

Related Posts – Ex-SEC Chair, Jay Clayton Believes Cryptocurrency Industry Is For Long Haul

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.