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Bitcoin drops for the first time in 8 weeks: when is the crypto winter?
Bitcoin Lost Over 7% Last Week For The First Time After Seven Weeks Of Growth
Nov 22, 2021
1 min read
Anna BakkerNews analyzer

BTC dropped to $ 55.5k on Friday, shedding nearly 20% from its November highs to date.

The first cryptocurrency has not traded at such a low since October 13.

According to the Coinglass platform, the highest liquidation volume on the eight largest exchanges (over $ 889 million) was observed on Monday, when Bitcoin broke through a five-day consolidation, dropping to $ 58,500.

Funding rates are returning to neutral levels, reflecting the restoration of a healthy balance between long and short positions, notes Arcane Research.

The cryptocurrency market has begun to respond to a cut in asset purchases announced by the US Federal Reserve on November 3, which will slow down the printing press and bring it to a complete halt by the middle of next year. Of all the assets, cryptocurrencies may be the first to fall under the knife as the most profitable and at the same time risky investments.

The DXY soared to a 16-month high above 96.2 on Wednesday amid expectations for a tighter monetary policy.

“The strength of the dollar indicates that some of the factors driving the rise in the price of global assets, including BTC and cryptocurrencies, over the past 18 months, are beginning to emerge,” notes Delphi Digital.

Meanwhile, creditors of the defunct Mt. Gox is one step closer to paying out. Last week, the asset manager of Mt. Gox has announced the approval of a Bitcoin return plan. A large volume of coins when they hit the market can drive down the BTC rate.

Is Crypto Winter Coming? In 2018, the onset of the crypto winter could be identified by the fall of bitcoin below its 200-day average (MA). It is currently trading at $ 48,000, which is 20% below current levels. Above this level, it makes sense to talk only about corrections within a growing trend. A sharp and large drop in volumes under this line can be considered the beginning of a crypto winter, "the GravityPlus analyst team notes.

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