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Bitcoin crashed 18% - what's going on?
Bitcoin continued to fall on Saturday, dropping below $34,000 in a short period of time
Jan 24, 2022
1 min read
Peter JanssenMarket expert

BTC traded at these levels six months ago.

Over the past week, the first cryptocurrency has fallen in price by 18%. Ethereum collapsed by 27%, other leading altcoins from the top ten fell in price from 17.1% (Cardano) to 35% (Solana and Polkadot). The total capitalization of the crypto market over the past week has dipped by 22%, to $1.72 trillion (according to CoinGecko).

Players continue to exit bitcoin amid falling US stock indices. Trades on Friday ended with another decline in stock indicators. January of this year could be the worst for US stock markets in 14 years.

Over the past week, the S&P 500 index has fallen four days out of five, the weekly drop exceeded 5% and was the highest since October 2020. Earlier, Arcane Research reported that the correlation between Bitcoin and the S&P 500 had reached its all-time high. maximum since October 2020

Shares of crypto-currency companies are collapsing after bitcoin, writes beincrypto. Securities of the largest holder of bitcoins - MicroStrategy (MSTR) fell by 17% in a day. Since the beginning of the year - by 31%. Shares of Grayscale Bitcoin Trust (GBTC) fell 13% on Friday.

MicroStrategy manipulates reporting at the threshold of zero profit on accumulated BTC, writes cryptor. The US Securities and Exchange Commission (SEC) returned the financial report to MicroStrategy. The company attempted to move away from GAAP accounting standards in order to lower the book value of the 124,391 BTC purchased, which could show almost zero profit for the year.

Meanwhile, El Salvador bought another 410 bitcoins, taking advantage of the BTC drop. There are now more than 1,500 bitcoins in the country. BTC officially became legal tender in El Salvador last September.

“The persistence of a negative background in stocks sets up a deeper rollback of the cryptocurrency. Potentially, the crypto market capitalization could halve to $830-900 billion before we see a new wave of long-term buyers. For Bitcoin, this suggests a downside potential to $20,000,” the GravityPlus analyst team warns.

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