Bitcoin Breaks Below $40,000, Sending Market Into Red

Bitcoin Breaks Below $40,000, Sending Market Into Red


Key Takeaways

  • Bitcoin has dipped below $40,000, and many other assets have also declined.
  • Macroeconomic factors such as the Federal Reserve’s planned interest rate hikes and ongoing Russia-Ukraine tensions have impacted global markets over the last few weeks.
  • While major crypto assets look shaky, top-tier avatar NFTs appear to be in their own bull trend.
  • Share this article

    Other lower cap assets were harder hit as Bitcoin tumbled Friday. 

    Bitcoin Trades Below $40,000

    Bitcoin is trading in the red again. 

    The number one crypto asset dipped below $40,000 Friday amid uncertainty across global markets. It’s down 4.6% today, trading at roughly $39,700 at press time.

    BTC/USD (Source: CoinGecko)

    Ethereum, Solana, and many other assets suffered harder from the downturn. Ethereum is down 5.3% today, while Solana, Avalanche, and Terra, three Layer 1 chains often touted as Ethereum competitors, have tanked 5.9%, 7.8%, and 8.1%. The Metaverse tokens Decentraland and The Sandbox also declined alongside two of DeFi’s most established projects, Aave and Curve. 

    The latest dip follows weeks of rocky price action in the crypto market. While Bitcoin and other assets have occasionally shown bullish momentum, most assets are trading significantly down from their record highs. Bitcoin is 42% short of the $69,000 level it breached on Nov. 10, and Ethereum is 42.2% down from when it topped $4,800 on the same day. Solana is 64.9% down from its high, and many lower cap assets have fared even worse. Dogecoin, for instance, is trading 81.1% below its all-time high. The latest plunge puts the global crypto market cap at about $1.9 trillion, down over 36.6% from its $3 trillion peak. 

    READ also :  Nike Bought RTFKT. Now Its NFTs Are Trading at a Premium

    Several major macroeconomic events have impacted crypto in recent weeks. In December, the market fell on fears of the Omicron variant, before news of the Federal Reserve’s planned interest rate hikes caused another downswing. The market has experienced volatility around the Fed’s more recent meets, with a first hike currently expected next month. The Biden Administration, meanwhile, is confirmed to issue an Executive Order on regulating cryptocurrencies next week, and ongoing tensions over a possible Russia-Ukraine conflict have also affected the market’s sentiment. Outside of crypto, the S&P 500, Dow Jones, and Nasdaq-100 are also respectively down 0.41%, 0.3%, and 0.82% today. 

    While Bitcoin and most of the crypto market has had a rocky few weeks, some assets are defying the trend. The NFT market has shown low correlation with fungible crypto assets in recent weeks, with many top-tier NFTs trending up even as major assets struggle to make new highs. The floor price for Bored Ape Yacht Club NFTs topped 100 ETH for the first time last month, while other sought-after avatar-based collections like Azuki and mfers have soared. Even as Ethereum trades below its all-time high, dedicated NFT collectors are betting that 2022 could prove to be another big year for the red hot asset class. 

    Disclosure: At the time of writing, the author of this feature owned ETH, CRV, AAVE, and several other cryptocurrencies. 

    Share this article

    The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Findcryptonews.com makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Findcryptonews.com is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

    READ also :  Bitcoin bulls set to net an $830 M revenue after Friday's BTC choices expiration

    You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

    See full terms and conditions.

    JPMorgan Thinks Bitcoin Is Overvalued at $44,000

    Analysts at JPMorgan Chase have estimated that the “fair value” for Bitcoin is $38,000, suggesting that the asset is overvalued by around 12%.  JPMorgan Shares Bitcoin Valuation Models Despite its…

    Trudeau Says He’ll Freeze Bank Accounts; Crypto Fans Point to Bi…

    In response to the trucker-led protests over vaccine mandates, the Canadian government has for the first time invoked the 1988 Emergencies Act, meaning it can freeze or suspend citizens’ bank…

    What is Rarible: A DAO for NFTs

    What was once dismissed as a silly and expensive sector, NFTs give creators access to global markets in a way that’s never been possible before, and it’s all thanks to blockchain.Those familiar…

    Bitcoin, Ethereum Dip as U.S. Inflation Hits 40-Year High

    The market is reacting negatively to the consumer price index’s report on U.S. inflation.  Bitcoin, Ethereum Dip on Inflation Update  U.S. inflation has hit a 40-year year-on-year high, and crypto…


    Recommended For You

    About the Author: Crypto News

    Leave a Reply

    Your email address will not be published.