2022 is not off with a great start for the world’s largest cryptocurrency, as Bitcoin has dipped Monday below $40,000, the coin’s lowest price since September, as it shows no end to its volatility.
The leading cryptocurrency had dropped to $39,663.18 down from its record high of over $66,000 in October.
It had an upward trend from August thereon when it topped $50,000 in a first since May, rebounding from its then-highest value of $64,000.
According to data from CoinMarketCap, Bitcoin recovered from the blow it took on Monday, rising to $41,684.67.
Whenever the BTC rises, it takes up the entire crypto market alongside it, causing a surge in the value of other cryptocurrencies; however, with this decline, it dragged down other cryptocurrencies.
“The main culprit behind the slump in crypto prices is the Fed’s decision to withdraw massive liquidity, which has been pumped into markets since the onset of the coronavirus pandemic,” said Naeem Aslam, chief market analyst at Avatrade.
Bitcoin’s slight recovery following its tumble saw other cryptocurrencies recovering as well, with Ethereum and Cordano recovering 2.33% and 1.77%, respectively.
Source: Almayadeen English