Published
Online

Bitcoin declines to $41,600; lowest price since September

After a weeks-long drop, Bitcoin, the world's largest cryptocurrency, has significantly dropped to around $41,600, levels that have not been seen since September. This marks a tumble of over 50% from its all-time high of nearly $69,000 in November. 

bittooo

The second-largest currency, Ether, is not too dissimilar to Bitcoin in that it, too, dropped as much as 9% to its lowest level since 30 September 2021. According to CoinGecko, both tokens, alongside others including Solana, Cardano, XRP and Binance Coin, are all down over 10% in the last week.

The dip came minutes after Federal Reserve's December meeting was published on 5 January 2022. It gave the idea of unexpected rake hikes alongside a potential balance-sheet rundown.

Fundstrat strategists said: “The Fed’s intention to reduce the balance sheet in Q1 2022 is the primary cause of this sell-off. Unfortunately, no immediate support looks likely ahead of September 2021 lows at $39,573, with breaks of that leading down to last summer’s May-July bottom.”

Last year, Bitcoin grew around 60% which outperformed other asset classes, but in recent weeks the figures show it has struggled. 

Ben Caselin, Crypto Exchange AAX Head of Research and Strategy, said: “As the crypto market matures, we can see major crypto assets such as Bitcoin and Ethereum increasingly move in tandem with traditional markets including Treasury bonds.”

Antoni Trenchev, Co-founder of Crypto lender, Nexo, explained that a breakdown of Bitcoin's price below $41,000 “could get ugly, with the mid-to-low thirties a possible destination,” adding that between May to July last year, Bitcoin endured a two-month period of consolidation.

“A repeat of history can’t be ruled out as Fed tightening remains the popular narrative,” he concluded.

Premium+ Connections
Premium
 
Premium
 
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium Connections
Consultancy
Executive Profiles
Seminole Hard Rock Support Services
Seminole Hard Rock Support Services
Metropolitan Gaming
Holland Casino
Follow Us

Facing Facts: Q1 2024 analysis from across the globe

Gambling Insider tracks the Q1 results of operators across t...

Taking Stock: A guide to sports betting operator and supplier prices

Gambling Insider tracks sports betting operator and supplier...

Tailor-made: The power of personalisation in the modern gaming industry

With insights from GR8 Tech, Greentube and the Oregon Lotter...

Sportradar and the Taiwan Sports Lottery: More offerings, greater efficiency

Danny Fok, VP of Strategic Projects at Sportradar, speaks al...