In the first week of February, the price of Bitcoin shot up to $45k, down from $38k. February had marked the end of the “crypto winter” for many investors.
However, reacting to macro-economic factors and the increasing tension surrounding the Russia-Ukraine crisis, the price of Bitcoin has plunged once more, breaking an important support zone.
Market in Extreme Fear as Bitcoin Falls to $37,500
Unable to hold on to its $40k support over the weekend, the world’s largest crypto, Bitcoin, plunged hard, falling under $38k.
Losing 3% over the last 24 hours, Bitcoin now trades at $37,500, its lowest point since February 4. Bitcoin’s market cap is now at $710 billion, despite peaking above $840 billion on February 9.
The seven days price chart of Bitcoin (BTC). Source: Tradingview
The sharp price drop of Bitcoin has seen the world’s leading cryptocurrency fall to 25 points (its lowest on the scale since February 4) on the Bitcoin Fear and Greed Index, showing that the market is currently in the extreme fear territory.
When Bitcoin soared above $44k, the banking giant JP Morgan estimated the “fair value” of Bitcoin at approximately $38,000 per coin. In two weeks, the price of Bitcoin has fallen down to that region.
On the Flipside
- Ricardo Salinas Pliego, Mexico’s third-richest billionaire, has advised investors to buy Bitcoin now it is low and forget about selling them.
Why You Should Care
Vitalik Buterin, the co-founder of Ethereum, explains that the crypto winter could benefit the industry and reduce short-term speculators despite the persisting price drop.
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