We’re coming to the end of a bloody week in the markets, so let’s start by examining what happened and then diving into developments here at NewsCrypto.
Looking at the chart we can see that the price of Bitcoin has been falling steadily since the start of the week. On Friday morning the price plunged to $38,226, after a rally to almost $43,500 the day before. The bearish action continued throughout the day, all the way to $35,500 and continued so on Saturday, when it finally bottomed out just above the $34,000 level. The price crash has wiped out over $50 billion from the overall crypto market, as the BTC price hit six month lows.
Having plunged for 7,5% in mere twelve hours, the price downfall managed to liquidate an outstanding number of longs. For all cryptos combined, 24-hour position unraveling totaled a staggering $725 million. Bitcoin led the liquidation pack at over $250 million, followed by Ethereum at $163 million and Solana at $10.9 million.
Bitcoin investors and traders seem rather reluctant to add to their positions, since the price has been in a downtrend ever since breaching the previous all-time high on 10th November last year. On top of the price movements, there are also some macro aspects that contribute to the selling pressure, the most obvious being the Fed announcing an increase in the pace of its asset purchasing taper, as well as raising rates at least three times in 2022.
Since Bitcoin (and consequently the whole crypto market) is highly correlated to tech stocks from NASDAQ index, which is going to suffer in a high interest rate environment, where liquidity isn’t ‘easily’ available, investors may give second thoughts to putting their money into digital assets in the short term. On top of that there is some regulatory uncertainty regarding cryptocurrencies, such as the Russian central bank proposing a total crypto ban of trading and mining, as well as SEC’s investor advisory committee calling for the agency to open public comments regarding digital asset regulation.
Let’s look at developments here at NewsCrypto now. Since we’re primarily an educational project, we have an obligation to offer top notch educational material to masses that enter the crypto sphere daily. Hand in hand with our mission, we’ve announced that we’re working on adding in-depth courses into our School. They will cover everything from fundamental and technical analysis, to in-depth presentations of specific interesting subjects related to crypto, as well as extensive coverage of the technical aspect of blockchain. We hope that this expansion of content will not only improve your learning experience, but also bring crypto content to broader masses.
On Friday we informed our users that five lucky members of our community will receive a 100% cashback for their purchase of NewsCrypto professional subscription. This means that if you still haven’t joined our Pro Tier, you’ve got a perfect opportunity to do so. You could be one of the lucky winners who will receive back their tokens, or at least purchase it at 22% off, since all our professional subscriptions are still available at a discount until the end of the month.
On Friday we also held our first AMA session in 2022. Users were able to submit all of their burning questions prior to the event, which was held in our Telegram chatroom. Having chosen the most interesting questions, we answered them live. In case you missed the event you can open any discussion in our Telegram chatroom, where our admins or other members of the community will answer all of your questions.
In hopes that the bulls are finally going to show some strength and manage to make a reversal, I wish everybody a successful next week. As always, I’ll update you on our development and action in the markets at the end of next week.