Bitcoin tumbles below $47K wiping out October gains — Bear market begins?

Bitcoin (BTC), which has fallen to $47,000 suddenly on Dec. 4, lost nearly 20% in 24 hours. This is the largest one-day drop in Bitcoin (BTC) since May 15, when it dropped to $33,000.

BTCs market price fell 26.4% after a week of support at $57,206. It then dropped to $42,268 and recovered to $45k. According to ByBit data the Bitcoin market suffered $1.3B in total liquidations over the hour. $735M was liquidated in BTC longs as a result of this drop.

Diagram showing total liquidations of BTC. Source: ByB

The bear market in Bitcoin cancels the 2-month-long bull market that began Sept. 29, when BTC surged more than 63% to reach an all-time high $67,602 by Nov. 8. TechDev and many other Bitcoin analysts see a similar trend in Bitcoins price action each year.

Each #Bitcoin cycle has had a red month, followed by two or three very green months.
— TechDev (@TechDev_52) October 18, 2021

The two-month bearish streak in Bitcoin can also be attributed the mainstream resistance of the US regulators, who have invited the CEOs prominent crypto exchanges like FTX and Binance US to a hearing on crypto assets.

Related: Zimbabwe could be the next country that accepts Bitcoin as legal tender

Bitcoin continues to be a viable asset in countries with unstable economies, despite concerns about volatility and non-compliance of traditional financial practices.

The government of Zimbabwe follows El Salvadors lead and is looking into the widespread use of Bitcoin. Cointelegraph reported that Colonel Charles Wekwete (retired Brigadier) is the permanent secretary of the cabinets egovernment technology unit. He confirmed that negotiations with businesses are underway.

Wekwete stated that the authorities are working on regulations to protect consumers from financial threats like unregistered cross border transfers, externalization and money laundering.