Bitcoin hits a 10-Month Low Below 33,000

Bitcoin Slides Further 

The Bitcoin bleed is not stopping. 

Monday’s low price for bitcoin was a 10-month high. It traded below $33,000 for its first time since July 2021. Bitcoin briefly reached $32,750 but traded just above $33,000. It is now trading at just over half the level of its November 2021 high. 

This latest tumble comes following a turbulent few days in crypto and global market. According to CoinGecko data, Bitcoin has a total of 256 transactions. fallen by 14.7%Ethereum has seen a dramatic increase in usage over the past week. Lost 15.9%Because of its declining value, many lower-cap assets have also fallen more. Though the whole crypto market has taken a beating since crossing a $3 trillion market cap in November, May has kicked off in a particularly bleak fashion for crypto’s famously steadfast “HODLers.” 

That’s partly due to an uncertain macroeconomic environment spilling into all asset classes. Last week saw tech stocks like Meta and Netflix extend their losses, while the Bank of England warned of a possible recession. Arguably the biggest catalyst behind the recent volatility, the Federal Reserve’s move to hike interest rates, starting with a 50 basis points add-on last Wednesday, has marked a major shift in market conditions as investors face the challenge of navigating a rising rates environment rather than the money printing era that helped crypto and other assets soar in 2021. 

The crypto market sentiment is at an all-time low amid the unstable climate. The Crypto Fear & Greed Index, a popular indicator that measures confidence among crypto traders, is currently reading at “extreme fear.” The vast majority of crypto assets are heavily down year-to-date, a fact worsened by the Fed’s planned tapering and rate hikes due to follow throughout this year. Some of the most prominent breakout stars in 2021, including Ethereum and Bitcoin, are now down at least 50% from their highs. Solana is down 72.5% from its peak of $71.66. Terra has seen its market value drop by just half in a month due to UST stability issues. Dogecoin, on the other hand, is 84.1% below the peak it reached last year. 

After today’s dip, the global cryptocurrency market cap has fallen to around $1.58 trillion, with Bitcoin’s $627 billion accounting for just under 40% of that sum. 

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