The price of Bitcoin (BTC) fell sharply late on January 5 as the flagship digital asset sank as low as $42,800 after falling from over $46,000 in less than three hours.
Since the beginning of the year, Bitcoin’s overall market value has dropped by $62 billion, or almost 7%, from $878 billion on January 1 to $816 billion on Thursday, January 6.
With a 39.7% share of the global cryptocurrency market dominance, Bitcoin is now selling for $43,080, a decrease of 7.10% in the past 24 hours and 8.38% in the previous week, according to CoinMarketCap statistics.
Immediately upon publication of the minutes of the December meeting of the U.S. Federal Reserve (Fed), the cryptocurrency market plunged. After starting a record asset-buying program in 2020, when the coronavirus pandemic first surfaced, the government said in 2022 that it would gradually decrease its $8.3 trillion balance sheet.
Consequently, up to $110 million of BTC longs were liquidated in 15 minutes and wiping out roughly $315M of perpetual futures open interest in 30 minutes, crypto futures in total worth over $812 million were liquidated, leaving cryptocurrency trading experts divided on what’s next for the digital asset.
Lead Insights Analyst Will Clemente stated:
“Honestly surprised we didn’t see more of a flush today if this was aggressive longs built up. It could still resolve to the upside. All I know for sure is that this party is just getting started.”
Whereas, Kaleo a renowned crypto trader, revealed:
“I’m starting to lean bearish. It just doesn’t feel right that we’ve been consolidating in this range for so long without being able to reclaim any significant levels higher.”
“March was when I was expecting this cycle to top, and at this point it would take quite a bit to see the reversal we need to get there. Plenty of charts have already broken beneath key HTF support levels (e.g., ETH).”
The global crypto market cap
As a result of the Bitcoin price crash, in turn, it has affected the overall market, with the total market capitalization of all cryptocurrencies standing at $2.05 trillion, representing an 8.58% decrease over the previous day.
Over the past 24 hours, volume is $158.2 billion, representing an 82.61% increase from the previous day. DeFi is presently $23.72 billion, reflecting 14.99% of the total 24-hour volume in the cryptocurrency market, whereas the volume of all stable currencies is now $131.95 billion, 83.41%.
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