Bitcoin falls past $38,000 as Crypto woes continue, Ethereum, Cardano, and Solana drop as well

In an extended selloff of cryptocurrencies, Bitcoin fell past $38,000 yesterday marking its lowest value in the last six months.

The token dropped by about 8.7% after a three-day downturn as over 236,000 traders closed their positions over 24 hours. According to crypto trading and information platform Coinglass, liquidations totaled roughly $867 million.

Other cryptocurrencies were similarly affected as investors offloaded risky bets as the week has been quite volatile for global markets. Ether for one fell below $3,000, while Solana, Cardano, and Binance Coin also dropped.

So far this year has not been kind to Bitcoin as prices are down more than 40% from its early November peak. Digital assets suffered mainly against a wider tech selloff, rising regulatory threats, and concerns with tightened US monetary policy.

Recently, UK, Spain, and Singapore regulators suggested a tightening of rules surrounding crypto assets to inexperienced investors. Furthermore, the Russian central proposed a ban on cryptocurrencies altogether.

“Rumors of Russian mining bans, the effects of tapering programs, and ongoing regulatory concerns in certain jurisdictions are currently taking more weight in trading and investment decisions than the underlying long-term fundamentals,” said Jason Deane, an analyst at digital asset research firm Quantum Economics.

“At the same time, increased use and adoption of Bitcoin in high-inflation economies creates a confusing market picture leading to lack of decisive direction and momentum either way,” he added.

He then predicts that there will be short-term weaknesses to come as he claims trading will be choppy and directionless.

Deane predicted “choppy, directionless trading” in the short term with further weakness possibly still to come.

“Bitcoin and the broader crypto market remain subject to the whims of macro variables,” Fundstrat Digital Asset Research strategists Sean Farrell and Will McEvoy wrote in a note.

Source: Aljazeera