Early Sunday morning, bitcoin was trading at $50.984, down 15.62% on the day. This is the largest single day drop in interest rates since Thursday the 21st. January 2021.
This downward movement has pushed bitcoin’s market cap to $1T, which is 50% of the total cryptocurrency market cap. The highest price for Bitcoin was $1,049T.
Bitcoin has recovered quickly and is currently trading above $55,000, 10% higher than today’s low.
- Bitcoin’s hash rate dropped 40% today due to a power outage in Xinjiang. One province in China represents a significant portion of the Bitcoin network. The price usually follows the hash rate, which could be the main reason for the drop.
- The US Treasury Department is reportedly planning to sue several financial institutions for money laundering through cryptocurrencies.
- Coinbase insiders dumped nearly $5 billion worth of COIN shares shortly after the IPO.
Bitcoin was trading in a bullish channel that formed on the daily timeframe before the price dropped to zero. Bitcoin has currently lost key support in this channel, but it would be interesting to see if bitcoin can regain support and close above $58,000 after today’s close.
In the short term, bitcoin remains bullish as long as it stays above the bullish channel and finds daily support at $58,000. If the price fails to regain this support, we could see a further decline in the near future. Be prepared for that too.
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