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Crypto: Bitcoin drops dangerously close to $40,000

Mon 22 Jan 2024 ▪ 3 min of reading ▪ by Luc Jose A.
Getting informed ▪ Trading

Bitcoin continues to disappoint. Following the recent approval of the very first Bitcoin Spot ETF, a literal explosion of the crypto market was expected. The exact opposite is happening. Bitcoin (BTC), the engine of this fast-growing industry, is facing its first major crash of the year, dragging most altcoins down with it.

Le bitcoin chute

2.15% drop for a bitcoin price below $41,000!

The crypto market has taken a significant hit. Bitcoin (BTC), the beacon of dynamism in this ecosystem in recent months, has significantly decreased in valuation over the last few hours.

In the last 24 hours, the asset has lost 2.15% of its value, falling below the $41,000 threshold. The queen of cryptos is currently valued at $40,795, with a decrease of 0.35% in the past hour.

It’s one of the most significant substantial corrections of bitcoin (BTC) since the beginning of the year. The big question is what are the reasons behind this situation, knowing that many analysts were rather anticipating a rise in the asset’s power.

According to some market observers, this bitcoin downturn seems mostly related to a profit-taking trend. A dynamic that involves several investors and traders with substantial portfolios.

Bitcoin’s free fall significantly affects altcoin prices

A drop that plunges altcoins into the red

The recent drop in bitcoin (BTC) has cast a shadow over most other cryptos as well, affecting their prices significantly. This includes Ether (ETH), the second most significant crypto in terms of market capitalization. The asset is currently trading at $2,379, reflecting a decrease of 2.69% in the last 24 hours.

The same is true for SOL, the native crypto of Solana which, despite its unique technological features, also faces the market’s volatility. SOL has undergone a drop of 5.82%, resulting in its price settling around $87.75.

The situation is similar for XRP, which hasn’t escaped the market correction that Bitcoin is undergoing. The crypto, supported by Ripple, has recorded a loss of 4.23% over the last 24 hours. Its current price is $0.52. It’s the same scenario in the world of memecoins with Dogecoin (DOGE) falling by 4.95% to a price of $0.08.

Paradoxically, cryptos like Manta Network (MANTA), Frax Share (FXS), Flow (FLOW), Ronin (RON), and Litecoin (LTC) are all in the green. As the market goes through this correction, investors are focusing on these fluctuations and on the activity of whales that often give an insight into the dynamics currently in play in the crypto landscape. Hopefully, Bitcoin will regain its colors soon!

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.