- Bitcoin price drops below $45,000.
- The dip has been linked to several macro factors.
- Analysts are eyeing the $40,000 price level.
Bitcoin price drops below $45,000
It was a euphoric moment for the crypto market when the price of Bitcoin’s price rose to its all-time high above $58,000 on Sunday. However, the coin dropped by $3k the following morning. Since then, Bitcoin had recovered from the fall and was trading around $52,000 yesterday.
However, this morning Bitcoin has now dropped below $45,000, which is about a 15% loss within the last 24 hours. Bitcoin is now trading around $44,900. The dip has been linked to several macro factors. Moreover, Bitcoin seems not to be the only one affected, with assets like stocks and bonds also experiencing the same.
Bitcoin futures open interest, a metric for measuring inflows into the market, has dropped drastically over the last five sessions. Based on data from Bybt, a crypto information platform, the value dropped from $19.1 billion to $15.1 billion.
Will Bitcoin price continue to rise?
A report from FXStreet revealed that BTC is ready to slide further to the January month high around $41,990. However, it further stated that if the price should drop further, a reasonable support area could be between $40,923 and $40,000.
The analysis from FXStreet also revealed that if the price should slump below the $40K price mark, the $36,560 mark could be an important zone to keep an eye on. The $36,560 price level aligns with an upward sloping trend line from December last year, according to the data.
Market analysts have admitted that it is difficult to tell where Bitcoin price will go next. The slight recovery of Bitcoin yesterday was due to Square, a Paypal rival, acquiring more Bitcoin. Also, many crypto enthusiasts are HODL because many large institutions like Tesla and MicroStrategy have invested heavily in Bitcoin.