Bitcoin price dropped below the $38,000 threshold, turning the altcoin market into the red. In the last 24 hours, Bitcoin has fallen below the 38,000 threshold. The cryptocurrency has slumped as low as $37,664 over the past day. At the time of writing, BTC is changing hands at $38,012.
Bitcoin price at $38,000: Are the bears taking control of the market?
As we have reported as Kriptokoin.com, the fall of Bitcoin causes a serious downward wave in the market. The second largest cryptocurrency is Ethereum 2.1 percent, BNB (BNB) 3.9 percent, XRP 5.5 percent, Solana (SOL) 5.4 percent, Cardano 5.3 percent, Dogecoin (DOGE) 2.8 percent, Avalanche (AVAX) 6.7 percent, Polkadot (DOT) fell 8 percent…
The sharp decline of leading altcoins caused 3 percent of the total market cap to “evaporate” to $1.8 trillion. Bitcoin in particular, and the crypto market in general, often have large fluctuations in price. According to experts, one of the reasons for the volatility of the cryptocurrency market lately is that investors are concerned that the US Federal Reserve (Fed) will continue to pursue its plan to tighten monetary policy.
What are the general and possible reasons for the decline in the market?
Short-term investors tend to sell due to uncertainty in the current crypto market. However, the fundamentals of Bitcoin are improving as institutional and investor interest in the cryptocurrency dwindles. Apart from that, the effects of the COVID-19 outbreak and the tension arising from the Russia-Ukraine war also negatively affected the altcoin market. Meanwhile, Bitcoin (BTC) whales continue to accumulate Bitcoin as the cryptocurrency remains below the key $40,000 level.
Currently, whale holdings are currently holding in September last year, according to data shared by Barron’s. We are in an accumulation phase where it has risen to the highest point since According to some, this may be one of the reasons why Bitcoin has remained relatively stable despite the recent bearish trends in traditional financial markets. Marcus Sotiriou, an analyst at GlobalBlock, noted that individual investors are extremely bearish, but whales continue to add BTC to their holdings.