- Bitcoin went down to 42k levels in what seems like a flash crash.
- Indian exchanges trade at a higher price compared to global markets. Therefore, creating an arbitrage opportunity among Indian traders.
- All other altcoins are bleeding as well as bitcoin is trading approximately 16% below it’s yesterday’s market price. (At the time of writing)
Bitcoin and cryptocurrency prices have plummeted, wiping out about $300 billion from the total crypto market in only two days.
After trading above $69,000 two weeks ago, the bitcoin price has plunged to around $42,000 per bitcoin, a loss of nearly 30%. Other prominent cryptocurrencies, such as ETH, Binance’s BNB, Solana, Cardano, and Ripple’s XRP, have all lost about 20% in the last 24 hours as a result of the latest move lower.
The sharp drop in bitcoin and cryptocurrency prices, which has coincided with some significant stock market falls, comes after renowned investor Louis Navellier warned that the widely anticipated Federal Reserve “tapering” might break the bitcoin and cryptocurrency bubble.
“The Fed is tapering, which should cause a correction in risk assets, including bitcoin,” Navellier stated, as first reported by Insider. “The more the Fed tightens, the more volatility we’ll see in stocks, bonds, and, yes, bitcoin.”
Navellier warned that the bitcoin price might go below $10,000 per bitcoin, a loss of more than 80% from its all-time high of about $70,000 achieved last month. Bitcoin’s price has experienced similar drops in the past, but bullish bitcoin and crypto investors believe the price will rise dramatically in the next years.
“I would consider a drop below $46,000 (the 200-day moving average) to be a red flag, and a drop below the spring low of $28,500 to be a completed massive double top, pointing to a drop to below $10,000, which would coincidentally match many of the multiple 80%+ drops in its illustrious history,” Navellier wrote.
The massive stimulus measures implemented by the US Federal Reserve and other central banks around the world in response to the economic hit of the Covid-19 pandemic and lockdowns put in place to contain it began last year, at least in part due to the massive stimulus measures undertaken by the US Federal Reserve and other central banks around the world in response to the economic hit of the Covid-19 pandemic and lockdowns put in place to contain it.
Following a significant rise in inflation and a nearly completely healed labor market, the Fed is now beginning to “taper” its loose monetary policy. While November’s employment figures fell short of forecasts, the unemployment rate dropped to 4.2 percent from 4.6 percent in October, the lowest level in more than a year.
It broke down the key level support and currently trading below the marked resistance. It nicely bounced from the marked support zone. So here we might expect some sideways consolidation in between the support and resistance zone.