Today the cryptocurrency market is swaddled by the bearish roar as the very first currency, Bitcoin has seen a drastic fall today trading below the crucial support level of $35,000 and $33,000. This has brought the currency to its lowest level this year.
At the moment, Bitcoin is trading at $32,891 with a fall of 5.4% over the last 24hrs, the lowest level since July 2021. The flagship currency has tumbled down nearly 14% in just a week and 50% from November when the currency hit ATH.
Bitcoin To Follow Nasdaq?
Bitcoin’s declining phase began parallel with the US stock markets, especially the Nasdaq index. This interconnection reveals that Bitcoin will experience more losses in the days to come.
Meanwhile, according to CNBC data, the Wall Street performance indicator, US stock futures are flattering between 1.2% and 2%. Now when looking at Bitcoin and Nasdaq’s performance Bitcoin has widely followed the Nasdaq showing no signs of decoupling.
On the other hand, the correspondence between Bitcoin and equities have strengthened in 2022. In last week’s Bitcoin sell-off, the currency witnessed the biggest intraday losses during the Wall Street Open.
In the year 2022, the Nasdaq Composite index has plunged by 23% but the flagship currency has by 27%. The main factors for such a drop are the fear of rising inflation and the speculations around the Federal Reserve to raise interest rates.
Bitcoin Price To Revisit $30k?
As the Nasdaq index is expected to drop by 2%, Bitcoin is most likely to follow. If this happens, then the flagship currency might slide below $30,000 anytime soon.
Though the firstborn currency has gathered some speculation from a few analysts that the Bitcoin is expected to follow the 2021 reversal pattern, Veteran trader Peter Brandt has recently claimed to go as low as $28,000.
These factors have forced the investors to move away from the risky assets and hop to safer zones with stablecoins or a few equities.
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Source: https://coinpedia.org/bitcoin/here-is-why-btc-price-is-set-to-crash-towards-30k-in-the-next-48hrs/