Bitcoin price continues to fall to the region $45,000, likely to fall to $40,000, price storms continue to sweep the market
After failing to regain the $50,000 level, Bitcoin price faces fresh selling pressure in the short term. However, the short-term turbulence cannot negate the bull market. Therefore, keep calm and don’t panic sale during this time.
BTC/USD 4-hour chart | Source: TradingView
The cryptocurrency market continues to be in the red as Bitcoin price drops 6% to nearly $45,000
Bitcoin price slipped below $46,000 for the second time on Sunday (May 16) in four days, raising the specter of a deeper short-term correction in the leading cryptocurrency.
At press time, Bitcoin has dropped to an intraday low of $45,026, recording a drop of more than 6% in 24 hours and almost 24% over the past seven days.
The BTC sell-off contributed to a market-wide correction for the crypto-asset, as Ethereum (ETH) fell 7%, Polkadot (DOT) fell 10% and Binance Coin (BNB) fell 3%. The crypto sell-off intensified on Sunday, as the total market capitalization of all assets fell from a high of $2.3 trillion to $2.1 trillion.
Market sentiment towards crypto has soured in recent days after it was revealed that Tesla is no longer accepting Bitcoin payments for its cars. Headlines of a possible investigation into Binance by the US Department of Justice have also raised concerns.
Meanwhile, Caitlin Long of digital bank Avanti believes that the disclosure of the first reserve of Tether has shocked investors. In a Twitter thread posted on Saturday, Long said the probability of default and the severity of the loss in Tether’s default have both increased due to its credit exposure. Specifically, nearly two-thirds of a company’s cash and cash equivalents are stored in commercial paper.
Despite all the noise in the market today, institutions are accumulating Bitcoin with growing confidence, providing compelling evidence that the bull market is far from over.
Companies with Bitcoin on their balance sheets have generated significant returns on investment. The value of MicroStrategy’s BTC reserves has increased by 2.3 times. Square’s Bitcoin vault value increased 2.1 times. Riot Blockchain’s holding value has increased 9 times. These numbers fell slightly amid the latest market correction.
Institutions have been flooded with Bitcoin for over a year. These so-called smart money investors are one of the biggest reasons BTC surged from just $10,000 last summer to a high of around $64,000 in April.
There are quite a few opinions that Bitcoin could fall one more beat towards $40,000. Therefore, please stay calm and do not sell-off in the meantime.
- Bitcoin Price Continues To Fall To $47,000, Dragging Many Altcoins Into Free Fall, Sending The Market Deep In The Red
- While Bitcoin Price Stalls Below $50,000, ADA Keeps Climbing Higher At $ 2