THECRYPTO.WATCH – Many people want to know what causes the price of bitcoin to fall continuously this week. To answer that, please read and follow the following article till the end.
Bad news, global financial markets experienced a bad trend again this week. This has an impact on the price movements of popular digital assets such as cryptocurrencies or so on. The proof is that the price of bitcoin fell this week.
Within a week, the market cap of the most popular crypto, Bitcoin, has fallen by 10% for the week. This condition made the price fall below the psychological level of US$ 50,000/BTC.
You could say this is the lowest level of Bitcoin price since early October 2021. Of course, many investors want to know what caused the glory of cryptocurrencies to fall.
Causes of Bitcoin Prices Falling Over The Week
There are various reasons why bitcoin fell aka free fall. The most obvious main cause is the turmoil in financial markets. This is due to the widespread sentiment of the latest Covid-19 variant called Omicron.
Even WHO has given a warning so that every country begins to prepare to stem the rampage of the new variant. Worried that a massive lockdown will make investors throw away investment instruments, including stocks.
So it is natural that the price of bitcoin falls, followed by other types of cryptocurrencies. Due to its young age, Bitcoin movements have become more volatile. This is also added with the regulator’s skeptical view.
As a result, various cryptocurrency digital assets were also sold by investors, which made their prices in the market fall. Moreover, the Fed has started so that the US dollar strengthened again. This makes many investors choose to dispose of risky assets. These include stocks and cryptocurrencies.
Other Causes of Falling Bitcoin Prices
In addition to global sentiment, many analysts consider the fall in Bitcoin prices to be caused by traders selling in the derivatives market. It is undeniable that the prices of derivative assets and commodity futures contracts also fall.
This is evidenced by the drop in oil prices by more than 5%. Coal prices also dropped 3%. Followed by CPO prices, which also weakened 4%. Bitcoin prices fall are natural in the investment world. As an investor, of course, you must have a plan and be able to analyze what to do in the future.