Bitcoin falls to January low
09 May 2022
Bitcoin slumped to its lowest level since January on Monday, as falling equity markets continued to impact crypto.
The world’s largest cryptocurrency fell to $33,266 in Monday morning trade, testing the January dip of $32,951. Should it edge under this level, it would be the lowest since last July, Reuters reports. The price then steadied to around $33,500, a 1.4% decline.
deVere CEO and founder Nigel Green said of Bitcoin’s latest price dip on Monday: “As typically happens, we except this dip to be used by ‘whales’ - who are individuals or entities that hold enough cryptocurrency to have the potential to move currency valuations – as major buying opportunities.
“This is because the robust fundamentals of the world’s largest cryptocurrency, such as being a digital, borderless, viable, decentralised, tamper-proof, unconfiscatable monetary system remain the same,” he added.
Moreover, last week the tech-heavy Nasdaq dropped 1.5%, and so far this year has fallen 22%, impacted by the likelihood of ongoing inflation forcing the Fed to raise rates, despite a growth slowdown. In addition, Nasdaq futures dropped another 0.8% in Monday morning trade in Asia.
“I think everything within crypto is still classed as a risk asset, and similar to what we've seen with the Nasdaq, most crypto currencies are getting pummelled,” said Matt Dibb, COO of crypto platform Stack Funds.
Dibb added that other factors that led to the decline over the weekend were the cryptocurrency market’s low liquidity during weekends, and fears the Terra USD stablecoin may lose its peg to the Dollar, the Reuters report adds.
Moreover, Ether, the world’s second largest cryptocurrency, dropped to a low of $2,421 on Monday, the lowest since the end of February.
The deVere CEO went on to say: “Institutional investors and well-resourced individuals will be moving to buy what they are regarding as ‘discounted’ Bitcoin this week.”