Bitcoin falls below $47k

23 Feb 2021

Bitcoin’s losses extended on Tuesday as selling pressure saw the market fall to below $47,000 for the first time in more than a week.

According to data published from Cointelegraph Markets and TradingView, BTC/USD dropped to lows of $45,000 on Bitstamp.

The price drop followed a warning about the cryptocurrency from U.S. Treasury Secretary Janet Yellen, who called Bitcoin an “extremely inefficient way of conducting transactions”.

The losses reversed a rally that stopped the 20% price crash on Monday from record highs nearing $58,000.

Bitcoin – the world’s largest cryptocurrency by market capitalisation – bounced at $47,400 on the day to move back up to $54,000 before another dip, Cointelegraph reports.

At the time of writing, the $47,000 level was a focus for support, with the trajectory remaining unclear.

That said, according to analysts, compared to past price drops, the current decline was relatively insignificant.

Cointelegraph Markets analyst Michaël van de Poppe said on Twitter: "We’ve experienced 2018 & 2019. This is nothing.”

He added on a YouTube update that Bitcoin could undertake classic March behaviour, which typically sees corrections: "Approaching bounce region for Bitcoin. I think we're close now,” he said on Twitter.

"Resistance zone at $48,500 and $51,000."

As previously reported by Cointelegraph, the downturn ranges from natural market cycles to whale sell-offs.

In addition, the price of other cryptocurrencies also fell. Ethereum declined 15% to $1,497, whilst XRP dropped 21% to trade around 45 cents, CNBC reports.