BTC hits five-month low
21 Jan 2022
Bitcoin dropped to a five-month low on Friday morning, falling 7.4% to $38,261. The second-largest cryptocurrency, Ether also fell below the $3,000 level, whilst overall, digital coins have lost $1 trillion in value since November highs.
This is according to CoinMarketCap data on Friday.
“Bitcoin and the broader crypto market remain subject to the whims of macro variables,” said Fundstrat Digital Asset Research strategists Sean Farrell and Will McEvoy.
Beforehand, after several days of declining in value and hovering around the $42,000 mark, the world’s largest cryptocurrency moved up by around $1,500 in hours, to hit a multi-day peak of $43,500. Yet the bears changed the situation and Bitcoin dropped to $40,000 and continued to edge lower until it hit $38,250, a level not seen since 5th August last year.
However, Bitcoin has since gained some ground and currently stands at $38,859 at the time of writing. In recent years the world’s largest crypto has soared, hitting its record high of almost $70,000 back in November, on increasing institutional adoption and its role as a hedge against inflation.
This was echoed by deVere founder and CEO Nigel Green earlier this month, who commented: “Bitcoin and other digital currencies are widely regarded as a shield against inflation mainly because of its limited supply, which is not influenced by its price.”
In regard to this latest price drop, the deVere CEO continued: “Volatility in this market should be considered in the same way as turbulence in any other market. The best way for investors to avoid potential risks and make the most of the opportunities that emerge in times of market volatility is diversification.
“Crypto investors should ensure they are sufficiently diversified across the main digital tokens and within a wider investment portfolio of assets, sectors and regions.”