Bitcoin dumps to hit six month lows near $38K

Bitcoin (BTC), which has dropped 7.5% over the past twelve hours, plummeting to 6-month lows of $43,328 at 4pm UTC yesterday and $38,258 today.

According to Cointelegraph, Bitcoin was trading at $38,761 as of the writing of this article.

The price crash of today has already wiped out about $50 billion of the total crypto market. Since November 2021, when it hit a peak at $3 trillion, the total crypto market cap has been slowly declining.

Investors are now wondering why the price movement, despite not having any news to blame for the dump. Many investors pointed to macro indicators. Tech stocks on Nasdaq are now in “correction territory”, and there are several expected interest rate increases for 2022.

Bitcoin is a mysterious currency. This could also be news that Raoul Pal, a Bitcoin bull, has apparently sold all of his Bitcoins and left only one…

Rekt Capital’s Twitter account stated that the current trend “shares some similarities with the price behaviour of late September 2021.” Bitcoin fell several times between $52,000 and $41,300 between Sept. and Oct. By November, it had risen to $69,000.

Over 85,000 people follow the InvesetAnswers page. They suggest that bears need Bitcoin below $41,000 to make $132 million in gains.

#BTC up by 4%, down by 9% in just 12 hours. Welcome to #OptionsExpiry. The bears have complete control. To make $132 million in gains, they need #Bitcoin below $41,000. Please wear your seatbelts or this! Friday Expiry is here!
— InvestAnswers, January 21, 2022 (@invest_answers).

BTC isn’t the only cryptocurrency to plunge today. Ether (ETH), Binance Coin(BNB), Solana/SOL, Cardano (ADA), Ripple (XRP), and Solana Coin (SOL) all suffered severe corrections between -6.3% and -10% over the past twelve hours.

Related: BTC is ‘likely to’ repeat Q4 2020 move — 5 Things to Watch in Bitcoin This Week

ADA suffered the largest overall losses of any top-ten coin by market capitalization. It dropped 10% to $1.21. SundaeSwap’s buggy launch today did not help matters.

Forbes contributor Billy Bambrough stated in an article today, that investors are rattled by recent announcements made by the Federal Reserve Bank about shrinking its balance sheet and raising interest rates.