Bitcoin Collapses By Most In Nearly A Month – Its Golden Days Are Over?

Christian Encila

Last Updated: May 6, 2022 12:06 pm

2 mins read

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Bitcoin fell to its lowest level in nearly a month as the optimism that had pervaded global markets following the Federal Reserve’s meeting on Thursday quickly vanished.

On Thursday, sellers returned in full force, driving equities and cryptocurrencies down. Despite short-term price movements, the risk-off mood among market participants has been a recurrent trend this year.

Bitcoin price fell below the $38,500 support level after failing to cross the $40,000 resistance level. The cryptocurrency has lost 8% in the last 24 hours and is now consolidating about $36,500.

In the past seven days, BTC has also decreased by 8%. This was also one of the worst declines for cryptocurrencies this year. The token is now approximately 10% above its January 2022 low – a far cry from the $66,000 it registered in November last year.

Dragged By The Stock Market

On April 5, its value opened at $46,614, but since then, between small and slight recoveries, it has declined to Friday’s closing price of $36,230.

Bitcoin is the most volatile cryptocurrency, and market observers say these types of declines are usual given that the crypto market increasingly follows the stock market’s price movements.

According to CoinMarketCap statistics, the largest cryptocurrency has a 24-hour trading volume of $35,046,532,955. In addition, Bitcoin’s dominance index decreased by 0.3% to nearly 42%.

BTC total market cap at $757 billion on the daily chart | Source: TradingView.com

Other Cryptos Fall As Well

Similarly, the value of the majority of large coins decreased substantially. Ether fell as high as 7.1%. Avalanche and Solana, which were among the biggest gainers following Thursday’s rate hike by the US central bank, plummeted as high as 10% and 7.2 percent, respectively.

According to Edul Patel, Chief Executive Officer and Co-Founder of Mudrex, there is a possibility that BTC would fall below the present level.

“The 24-hour selling volume of Bitcoin increased slightly. Bitcoin’s support level has risen to $32,000. A similar downward trend could continue for several days,” he said.

Rising interest rates are the greatest risk for both cryptocurrency and stock traders. The Federal Reserve has already increased interest rates twice this year and is expected to do so again to counteract excessive inflation.

End Of The Bitcoin Golden Days?

Meanwhile, as the cryptocurrency market continues to be volatile, Bitcoin is anticipated to rise despite the worst economic and financial conditions.

As Bitcoin’s price continues to fall, however, some investors are becoming increasingly dubious of these forecasts and shifting their focus to other investment opportunities, or perhaps other cryptocurrencies.

Comprehending what comes ahead is difficult because of the numerous variables influencing Bitcoin’s performance and many crypto investors are still optimistic it can go back to levels it enjoyed during its glory days.

Featured image from Pexels, chart from TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.