Bitcoin collapsed on Thursday, the highest number of risky asset sales in almost a month. BTC lost 7.7% and ended the day near $ 40,700. Ethereum decreased by 7.7%, while other major altcoins in the top 10 also decreased from 5.4% (Binance Coin) to 8.5% (Terra).
According to CoinGecko, the total capital of the crypto market fell 7.3% to $ 1.94 trillion. Bitcoin sold more aggressively than Altcoin, so Bitcoin’s dominance index fell 0.3% to 39.8%. The Cryptocurrency Fear and Greed Index plummeted from 22 points to 30 and returned to horror.
Bitcoin has clearly lost its function as a defensive asset recently, and there is little correlation with gold, which was in high demand on Wednesday and Thursday.
The technical outlook looks bearish in the short term. Bitcoin was below the 50-day average and below the previous local lows. From the end of January to mid-February, it is quite possible that a retreat has been seen from the momentum of the decline and a new step-down has been formed.
JPMorgan Bank pointed out that crypto assets will be adversely affected by US monetary tightening. This approach makes cryptocurrencies equal to growing companies. Growing companies are under increasing pressure in the last few weeks as market interest rates rise.
Charles Manger, a companion to the legendary investor Warren Buffett, likened cryptocurrencies to “sexually transmitted diseases” and praised China for banning them. According to him, cryptocurrencies are used by hackers, criminals, and tax evaders.
This article was written by FxProAlex Kuptsikevich, Senior Market Analyst.