January 11, 2022

What happened? Bitcoin (BTC) Price Loses To Lowest Level Since September!

 The price of bitcoin has fallen to its lowest level since last September briefly following rising interest rate sentiment and continued inflation causing investors to take precautions and reduce trading positions in riskier assets.

The price of Bitcoin fell by 6% to touch a low of $ 39,771.91 based on Coin Metrics. Last time it traded about 3.5% lower at $ 41,014.85. Ether, the second largest crypto asset by market value, fell more than 7% below the $ 3,000 price level. The Ethereum price at the time was trading at $ 2,940.

Crypto investment sentiment was also affected by trading trends in the stock market especially in technology stocks. Given the results of the U.S. Treasury. 10 years soaring up in 2022, investors have turned to other instruments. On Monday, 10 -year bonds rose as high as 1.8%.

According to market observers at Genesis, he found that the bitcoin trading pattern is similar to the risky asset trading pattern over the past few months. When investors are restless, the BTC price is also affected (falling).

Last November, the price of Bitcoin soared to a record high of almost $ 69,000 followed by inflation readings that soared to the highest rate in 30 years. The string of investors turned to hedging assets such as gold and even bitcoin. Yet when investment patterns are more inclined towards stock investment patterns, a handful of investors are divided on whether to consider it a hedge or not.

The Fed’s tea announcement last week had a profound impact on the BTC as it has fallen nearly 40% since its highest reading last November. Crypto stocks also traded lower on Monday.