The value of Bitcoin has fallen below 40K USD for the very first time in 6 weeks. The plummet occurred around the close of the day this Tuesday, with the price of Bitcoin having gone down by 16 percent from approximately 47,300 USD at the beginning of the day to reach a low of 39,650 USD around 9 pm (UTC). The slide recorded a 25 percent regression from Bitcoin’s local highs upwards of 50,000 USD on the 7th of September.
The tieback, however, came after Bitcoin had gone up more than 80 percent after reaching 29,300 USD on the 20th of July and then moving into the highs of early September. Following those turn of events, Bitcoin has rebounded to trade slightly above 42,000 USD.
According to CoinGecko, Bitcoin was not the only cryptocurrency that suffered a sharp decline in price this Tuesday, in fact, 29 out of the top 30 cryptocurrency assets by market cap suffered a twenty-four-hour drop.
The Crypto Fear & Green Index reported that the bearish price action occurs simultaneously with sentiments of “extreme fear” throughout the market. Only a month ago the metric signalled towards “extreme greed”.
A number of cryptocurrency’s opinionated critics have stopped on the tip to display revelatory predictions for the markets. Mr Whale took to Twitter to announce to his 300K follower that the bear market has arrived.
Stockbroker Peter Shiff also joined in doe comment. He stated that the development of altcoins will soon enough overpower demand until the cryptocurrency bubble “pops”. Bitfinexed, on the other hand, opines that the credit troubles of real estate titan Evergrande will endanger Tether’s reserves as well as the broader cryptocurrency markets via systemic risk.
The price drops also came as a result of United States SEC chair Gary Gensler comparing stablecoins to poker chips. He also called for the tightening regulation of the said sector.
Nevertheless, a major portion of Cryptocurrency Twitter records fervent dip-buying as a result of the market action, with a number of experts maintaining that Bitcoin is set for a phase of recovery granted that the prices stay above local support.
Novogratz, the CEO of Galaxy Digital made an appearance on CNBC stating that he will not be nervous unless Bitcoin does not stay above 40,000 USD and Ether plummets below 2,800 USD.
Novogratz is not the only one seeing the approximate 40,000 USD level as a critical support zone for Bitcoin. Renowned analyst Willian Clemente III also recently asserted that Bitcoin is not likely to fall below 39,000 USD because of its real-time scarcity and liquid supply floor.