Bitcoin price went down during the weekend due to the rocky conditions this week ever since the announcement of the omicron Covid variant.
Bitcoin price down
Not too long ago Bitcoin was trading at 65.000 while earlier today it reached 47.000 USD. There was a massive sell off in the stock market as well which further lead to BTC going down.
Over the weekends, cryptocurrencies usually fall in price due to the lack of institutional investors and over leveraged traders.
Inflation and interest rates
In addition to this, earlier this week the Federal reserve of the United States held a press conference. Traditionally speaking ,whenever the Fed speaks, the market always spooks. Furthermore, on this occasion , they have finally admitted that inflation is here to stay , reason for which rise in interest rates:
Inflation rises automatically means it’s more expensive to borrow money. The whole ordeal started because for the past 12+ months either the current or the Trump administration decide to hand out people various cash stimulus checks:
There have been so far around 6 such handouts amounting to – depending on the income – anywhere between 600-1200 dollars for each individual during the pandemic. It is estimated that a total of aprox. 4$bn were printed and handed out to the population of the US in less than 18 months:
Naturally, because of the increase in supply of the currency, it’s nominal value went down; meaning, you buy less items with the same dollar amount year by year, only this time it will be a sharper decline due to the volume of money artificially pumped:
Another reason for the sell-off was because we’re approaching the holiday season in some parts of the world. Because of this, a lot of investors decided to sell . Some of them even prefer to sell at a loss as marking capital losses now can help them deduct declarable income for the next year capital gains. This is how ultimately, Bitcoin price went down today.
Of course, if BTC is going down abruptly, it generally takes the market with it. Bitcoin is the musical to the orchestra of crypto. However if you look at the chart you can still see that we are in a macro – bull trend. Most analysts agree that this a nominal – and well received – correction. I’m saying well received because if the price of an asset keeps going up, what you will eventually see is a sharper decline followed by a possible stagnation.
Me personally, I’m buying more at a discount. I bought ETH and SOL earlier at key RSI levels – below 30. An RSI below 30 means that asset is currently oversold and bound to bounce back up soon. You can read more about Technical Analysis here: