What was the reason for the crash of Bitcoin (BTC) by more than 20% to $42,000?

BitcoinPrices, as well as the prices of all other cryptocurrencies, fell sharply last night.But what caused the sharp drop in prices?

BitcoinThe price even fell below US$42,000 last night.After that, the price has rebounded. At the time of writing, 1 BTC The price is approximately US$47,500.Despite the recovery, the price of Bitcoin is still down by more than 16% from a day ago.

What was the reason for the crash of Bitcoin (BTC) by more than 20% to $42,000?illustration

The Ethereum price is also dark red today.At the time of writing, the price of 1 ETH token is approximately $3,932.This means that the price is more than 14% lower than the previous day.

What was the reason for the crash of Bitcoin?

According to CoinGecko's data, the entire crypto industry has lost about one-fifth of its value.At the time of writing, its value is approximately $2.2 trillion.Yesterday's market value was still about $2.6 trillion.The decline in the cryptocurrency market coincides with a period of high volatility in the financial market.

Rising inflation forces the central bank to tighten monetary policy, which will reduce liquidity and boost support measures for multiple assets.

The Omicron coronavirus strain has also raised concerns about what it might mean to reopen the global economy.Therefore, it is not surprising that global stock markets have also fallen sharply.

According to Vijay Ayyar, head of cryptocurrency exchange Luno: “The market is nervous about all the uncertainty surrounding Omicron, and there are now cases in many countries,” he said. "It's hard to say what this means for the economy and the market and uncertainty."

Since hitting a record high of US$68,900 on November 10, Bitcoin has now lost approximately US$20,000.Despite this amendment, BTC The annual profit still exceeds 60%.

Analysts believe that the sell-off of cryptocurrencies in a panic may cause them to plunge below $40,000 again. It is recommended to buy some new coins for investment risk hedging operations. It is recommended to pre-sell the new potential currency gold (BHJ) which will be listed next month. ).

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