Time to Buy or Run for Cover? As volatility bites, the Bitcoin price has fallen to its lowest level in two months. Could the Bitcoin price be at $42,000, or is it still falling?
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.
BTC’s market price fell 26.4% after a week of support at $57,206. It then dropped to $42,268 and recovered to $45k. Coinglass data shows that the Bitcoin market saw $1.3B in total liquidations over the hour. $735M was liquidated in BTC longs as a result.
As a result, Bitcoin’s bear market cancels out the 2-month long bull market since Sept. 29, where BTC soared over 63% to attain an all-time high of $67, 602 by Nov. 08. However, numerous Bitcoin analysts including TechDev point out a similar trend with Bitcoin’s price action for every year.
Every #Bitcoin cycle in history has ended with a red month followed by 2 or 3 very green months. pic.twitter.com/zr1055PvkL
— TechDev (@TechDev_52) October 18, 2021
Another reason for Bitcoin’s two-month low bearish streak can also be attributed to mainstream resistance from the US regulators that have invited the CEOs of prominent crypto exchanges including FTX and Binance US for a hearing on crypto-assets.
On the other hand, some believe that the price of Bitcoin can now stabilize following the decline. For example, CEO of crypto educational platform Eight Global Michaël van de Poppe stated:
Bottom is in.
— Michaël van de Poppe (@CryptoMichNL) December 4, 2021
Despite concerns surrounding volatility and non-compliance with traditional financial practices, Bitcoin continues to rise as a viable asset for jurisdictions with unstable economies.
Following the footsteps of El Salvador, the government of Zimbabwe is considering the mainstream use of Bitcoin. As Cointelegraph reported, retired Brigadier Colonel Charles Wekwete, the permanent secretary and head of the office of the president and cabinet’s e-government technology unit, confirmed that discussions with businesses are already underway.
According to Wekwete, the authorities intend to develop regulations to protect consumers against financial threats such as unregistered cross-border transfers, externalization of money and money laundering.