Bitcoin fell 6%, below $ 48k - what's going on?
Bitcoin Falls On Thursday After 4 Days Strengthening, Ending All Previous Advances
Dec 10, 2021
1 min read
Anna BakkerNews analyzer

The first cryptocurrency does not hold the round level of 50 thousand dollars, losing more than 3 thousand dollars at the moment.

Bitcoin fell amid downturns in stock markets amid concerns over the omicron coronavirus strain. The UK has introduced new restrictive measures to contain the pandemic. Denmark and China have also introduced some restrictions to slow the spread of the coronavirus.

Another reason for the decline in risky assets, including bitcoins, may be the situation around the problematic Chinese developer Evergrande.

On Thursday, the international rating agency Fitch downgraded Evergrande's credit rating to "limited default". The reason for the decrease was the passability of payments on bonds after the expiration of the grace period on December 6.

The head of the People's Bank of China, Yi Gang, said that the problem of the developer is a market event and will be solved by market methods.

Market participants believe that in the event of a default, damage will be done not only to the Chinese economy, but also to the entire world system.

The bankruptcy of Evergrande could also affect the stablecoin Tether, the issuer of which is likely to have high risks associated with Chinese securities.

In this scenario, the inevitable rise in the dollar exchange rate, as well as the yield on American bonds, may provoke additional capital outflow from cryptocurrencies. With that said, the decline in BTC could continue to $ 30,000, ihodl writes.

MicroStrategy, meanwhile, spent an additional $ 82 million to buy 1,434 bitcoins, increasing its holdings to 122,500 BTC, the largest position among public companies. Since the middle of last year, MicroStrategy has invested $ 3.66 billion in bitcoin, with an average purchase price of $ 29,861, ttrcoin writes.

The third Bitcoin holder of all wallets to own a cryptocurrency acquired over $ 150 million worth of currencies during the recent market crash.

The bitcoin hashrate, reflecting the amount of computing power in the first cryptocurrency network, has almost completely recovered to May levels when the Chinese authorities imposed new restrictions on the industry.

At the same time, the Bitcoin Dominance Index fell to nearly a four-year low. BTC's market share fell to 37.8%, the lowest since February 2018, according to Coingecko.

Galaxy Digital CEO Mike Novogratz claims bitcoin will not drop below $ 40,000 in the current adjustment.

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