The price of bitcoin (BTC) is about 50% below the last all-time high (ATH) of about three months ago, dragged down by the global macroeconomic environment.
According to charts from blockchain analytics firm Glassnode, the top cryptocurrency opened Monday, January 24, down over $33,500 (USD). BTC is currently trading at approximately USD 34,200$.
This translates to 50% less of its value when compared to the ATH that bitcoin touched last November, when it hit USD 68,641 for the first time.
According to Glassnode, this is the second major drop in bitcoin price in this new halving cycle (where miners' rewards were halved last year).
Recalls the company that the corrections recorded in last 2017 and early 2021, were "much shallower", of 20% and 40%, respectively, while in July 2021, the drop was 54%.
In graphs, in three months (November - January), the price of bitcoin has been represented by considerable drops, which have deflated the price of the pioneer cryptocurrency since it reached the ATH. In weekly terms, only three reported growth, the other nine being downtrends.
Today's quote comes after last January 21, BTC broke the resistance it had above USD 40,000 and embarked on a downward cycle, which has led to significant liquidations on the exchanges. On that day alone, USD 727 million in sales were reported.
As usual, bitcoin's price dragged down the rest of the market. Ether (ETH), Ethereum's cryptocurrency, for example, gave up almost 10% from yesterday's price and is trading above USD 2,276, according to our price calculator.
Macroeconomic situations have affected bitcoin
As mentioned, the price of BTC responded to global macroeconomic situations, such as the Russian Central Bank's proposal to ban Bitcoin trading and mining.
As reviewed by this media, analyst Juan Rodriguez warned that Bitcoin would drop below USD 30,000 if it does not resume its previous support. In fact, he warned that these global situations give reason to believe that the price will not recover in the short term.
But not all are bad predictions. Despite what Juan Rodriguez predicted, a report by Willy Woo, let it be known that BTC was about to reach the bottom, but to bounce and then continue on its upward path.
It will remain to be seen how bitcoin performs in the days to come. For now, many bitcoiners are calling to buy the dip, as holders resist the onslaught of a BTC in the red, hoping for a rebound in the short term.
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I don’t know....but it seems this dip is far from being over
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You may be right, it's just that the data and news don't indicate anything serious for Bitcoin. But we already know what the market is like.... Crazy haha.
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