BTC suffers the biggest drop in almost a year. The major cryptocurrency traded below $ 45,000 this Friday.
The price of Bitcoin briefly fell below $ 45,000 at the beginning of the day on Friday and a halo of nervousness was experienced in some sectors of the crypto ecosystem.
The top cryptocurrency touched $ 44,279 in the early hours of the day , the lowest level since February 11 , after it failed to stay above $ 50,000 for the third day in a row. At the time of publication of this note, the price of bitcoin had achieved a slight recovery and is trading USD just below USD 48,000.
This latest drop can be attributed primarily to rising bond yields and losses in global stock markets.
The yield on the bonds of the 10 – year Treasury EE. UU, up to a maximum of one year, 1.61% on Thursday and sparked fears of an anticipated reduction of the stimulus by the Federal Reserve EE. UU ., and this pushed stocks, bitcoin and gold down. These assets had benefited greatly from the huge monetary stimulus delivered by the Fed over the past 11 months.
Elsewhere, the S&P 500 fell more than 2% on Thursday , setting the stage for steep losses in Asian and European stocks. While Asian stocks took a beating early Friday, European indices are showing some resistance.
The DAX of Germany and the FTSE of the United Kingdom are now suffering marginal losses, after they fell more than 1% in the opening bell. Comments from European Central Bank officials appear to have calmed market nerves for now.
Returning to BTC, the price of the cryptocurrency was able to regain some ground to trade in the $ 48,000 zone . However, bitcoin still accumulates a drop of 6% in the last 24 hours and almost 20% in the week. If this decline continues through Sunday, the resulting weekly decline would be the largest since the second week of March 2020, when prices fell 33%.
In short, Bitcoin has suffered only two double-digit weekly losses and only eight weekly drops in the last 11 months. The data shows that the bulls have practically dominated the price action since the March 2020 slide and more since the beginning of October, where the price of bitcoin jumped from $ 10,000 to more than $ 58,000 in the last 5 months.