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BTC Nears January 2022 Low as Traditional Markets Tumble Too

Published 05/09/2022, 05:15 AM
Updated 05/09/2022, 05:30 AM
© Reuters.  BTC Nears January 2022 Low as Traditional Markets Tumble Too
BTC/USD
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    • Bitcoin (BTC) continued its price fall over the weekend.
    • At the time of writing, the price of Bitcoin currently stands at $33,523.28.
    • The S&P 500 has also suffered its longest weekly losing streak since 2011.

Bitcoin (BTC) continued its price fall over the weekend as it slipped below $35,000 for the third time this year. The leading cryptocurrency is now very close to its January 2022 low of $33,184. This is according to data from the crypto market tracker, CoinMarketCap.

At the time of writing, the price of Bitcoin currently stands at $33,523.28. The price of Bitcoin also reached a 24-hour low of $33,393.61, and crypto investors are bracing for even more losses.

BTC price drops below $35,000 (Source: TradingView)

The Crypto Fear & Greed Index, an index that tracks various indicators such as price volatility, trading volume, and social media activity, is flashing “extreme fear” at the moment. This isn’t too surprising given the fact that Bitcoin registered a 10% drop last week, which is its largest intraday fall since January of this year.

The fall in prices across the crypto market is a result of the growing uncertainty across the globe as the effects of the pandemic and the Russia-Ukraine conflict start to take their toll on the global economy.

Furthermore, governments and central banks introduced various stimulus measures that were designed to keep the economy going. However, authorities are now pulling all of these economic stimuli back in an attempt to bring inflation under control.

With everything going on, the space is in the same economic climate that it was when crypto prices were pushed to extraordinary levels last year. Therefore, investors should be prepared for further losses.

The prices in the crypto market seem to correlate with the traditional financial markets seeing that the S&P 500 has also suffered its longest weekly losing streak since 2011.

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