Bitcoin price managed to recover a bit on Tuesday, after briefly dropping below $40k at the start of the week.
The cryptocurrency experienced its longest continuous decline since 2018 in the first week of January, as market analysts warned of the possibility of a severe sell-off if it fell below the key psychological $40K level.
Funds are already being moved to exchanges by some investors, with one anonymous wallet transferring more than $40 million in BTC to Coinbase.
Other leading cryptocurrencies have seen a similar drop in bitcoin fortunes, with Ethereum (ETH), Binance Coin (BNB) and Solana (SOL) all down nearly 20 percent over the past seven days.
Chainlink (LINK) was the only top 20 cryptocurrency by market capitalization to have seen any positive movement since the start of 2022, rising more than 15 percent in price.
You can follow the latest cryptocurrency market news, analysis and expert price predictions in the live blog below.
Bitcoin price continues to rise
10:15 And Anthony Cuthbertson
Bitcoin price is back above $42,000, continuing its steady recovery since yesterday’s sudden crash.
It’s still down about 10 percent since this time last week, and more than 35 percent from its November high. It will take more than a slight rally to prove that the downtrend is over, but it has given investors some hope of a rally.
Bitcoin price rebounds as experts predict ‘rising prices’
Monday January 10 2022 20:06 And Anthony Cuthbertson
Bitcoin price managed to hold over $41,000, after venturing briefly into the sub-$40,000 region earlier today. Where you go from here will depend on a number of factors, but its short-term direction could ultimately determine overall market sentiment and thus the future path over the coming weeks.
We’ve heard from a couple of crypto experts, who tentatively predict that bitcoin could recover some of its losses, at least in the short term.
Here is what Marcus Soterio, an analyst at UK-based digital asset broker GlobalBlock, and Mike Novogratz, CEO of Galaxy Digital had to say:
Although the crypto market is in oversold territory, it is widely influenced by global markets and economic conditions. The plans announced by the Federal Reserve to raise interest rates in 2022, as well as reduce the rate of monthly bond purchases, have contributed to the selling of bitcoin so far.
On Wednesday, US inflation data will be released. The market expects the Consumer Price Index (CPI) to rise by 7.1 percent during the year to December and 0.4 percent during the month. If the number released is greater than expected, we can expect more Bitcoin selling pressure, as markets look to the future and higher inflation leads to further actions by the Federal Reserve to keep it under control. I think that due to the selling we’ve seen in recent weeks, the downside is limited in the short term, even with higher-than-expected inflation data on Wednesday.
Marcus Soterio, GlobalBlock
I know large organizations that are going through the job placement process. They will see these levels as attractive levels to buy.
Mike Novogratz, Galaxy Digital
“When in doubt, minimize”
Mon Jan 10 2022 at 16:27 And Anthony Cuthbertson
Bitcoin managed to get back above $41,000, which likely signals the end of its seven-day losing streak if it can hold its own.
Crypto industry insiders and commentators have been offering their views on the recent market downturn on social media.
This is often repeated from Dan Heald, who works at crypto exchange Kraken, during times of price turmoil: “When in doubt, minimize.”
Bitcoin price flash crash
Mon Jan 10 2022 at 15:26 And Anthony Cuthbertson
Bitcoin price just dropped below $40.00, before immediately rebounding to its previous levels.
The recovery from the flash crash points to support at this level, just as it did in September 2021 when it rebounded from around $39,550.
Bitcoin price experienced longest losing streak since 2018
Monday January 10 2022 14:01 And Anthony Cuthbertson
Bitcoin has fallen for seven consecutive days, posting the longest losing streak since August 2018.
It is now down about 40 percent since its peak in November, with analysts warning of the potential for more selling if it falls below the crucial $40,000 level. The last time that low was this low was in September 2021, when it reached as low as $40,000 and rebounded again to reach new highs within two months.
You can read the full story here.
Hello and welcome…
Monday January 10 2022 13:49 And Anthony Cuthbertson
to independentLive coverage of the cryptocurrency market. We’ll bring you the latest news and market analysis throughout the day, as well as forecasts from cryptocurrency analysts and experts.