Crypto Selloff Pushes Bitcoin to a Six-Month Low of $38,000

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Bitcoin fell in an extended cryptocurrency selloff, surging above $38,000 to hit a six-month low.

The largest token fell 8.7% on Friday, marking a three-day slowdown. More than 236,000 traders have had their positions closed in the past 24 hours, with liquidations totaling $867 million, according to data from Coinglass, a crypto futures exchange and information platform. -cash.

Other cryptocurrencies were also in the red as investors offloaded risky bets in a volatile week for global markets. Ether fell below $3,000, losing as much as 11%, while Solana, Cardano, and Binance Coin also fell.

Bitcoin has had a rocky start to the year and prices are down more than 40% from the peak in early November. Digital assets have suffered particularly badly in recent days amid a massive sell-off in technology, growing regulatory threats and concerns over US monetary policy tightening.

Regulators in the UK, Spain and Singapore this week suggested tougher rules on promoting cryptoassets to inexperienced investors, while Russia’s central bank on Thursday proposed a complete ban on cryptocurrencies.

Bitcoin technical study points to a possible floor for the slide: chart

“Rumors of Russian mining bans, the effects of phase-down programs and ongoing regulatory concerns in some jurisdictions are currently taking more weight in trading and investment decisions than underlying long-term fundamentals,” said said Jason Deane, an analyst at digital asset research firm Quantum. Economy.

“At the same time, the increased use and adoption of Bitcoin in high inflation economies is creating a confusing market picture leading to a lack of decisive direction and momentum in either direction,” he said. added.

Deane predicted “choppy, directionless trading” in the near term with further weakness possibly yet to come.

A technical pattern based on a momentum indicator known as the Weekly Relative Strength Index hinted at the possibility that Bitcoin’s fall was due to a pause. On Friday, the indicator fell into a region that has historically accompanied lows in Bitcoin sales.

Bitcoin’s growing tech correlation sends holders into a mad dash

“Bitcoin and the broader crypto market remain subject to the vagaries of macro variables,” Fundstrat Digital Asset Research strategists Sean Farrell and Will McEvoy wrote in a note.

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