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November 27, 2022
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Bitcoin has dropped to less than $ 50,000

Bitcoin’s price has just dropped to less than $ 50,000. The cryptocurrency has not reached that level since the beginning of March.

So far, throughout the history of Bitcoin, the price of BTC has been above $ 50,000 in two periods, that is, between February 17 and 24, 2021, and then between March 8 and April 22, 2021.

In particular, after reaching an all-time high of $ 64,800 on April 14, the asset fell 24% in nine days to $ 49,000.

Something similar happened in March 2017, but the loss was greater, although the timing of the collapse is similar.

It is worth mentioning, however, that in 2021 the price of bitcoin always fell in the last days of the month.

Bitcoin falls

In January it dropped from $ 39,000 to $ 30,000, in February from $ 57,000 to $ 45,000 and in March from $ 61,000 to $ 51,000, so the current loss is perfectly in line with those of the last few months of this year, and of similar magnitude.

In the past, historically the price of Bitcoin has fallen close to the expiration of CME contracts, and the next expiration is Friday, April 30th.

These contracts always expire on the last Friday of the month, and it is curious how the end-of-month falls often ended just before these contracts actually expired.

It is important to note, however, that the price of bitcoin has been showing some signs of weakness for almost ten days compared to its mid-April high, so today’s drop was not a surprise for demanding analysts. It may also have been triggered by news that the new US president, Joe Biden, has proposed to increase capital gains taxation for the wealthiest people.

Particularly after Sunday’s sudden collapse, when the price dropped from $ 59,000 to $ 52,000 in a matter of minutes, there was widespread speculation that this was not just an isolated episode, but revealed a degree of difficulty, perhaps due to the excessive growth in recent months.

On the other hand, from the beginning of the year until mid-April, the price of BTC had risen 125%, and in the last 12 months the growth had been even higher than 800%, so it was plausible that there could be a correction.

The current price of $ 49,000 is still 70% higher than at the beginning of the year, suggesting that there may not be a total drop, but only a retraction.

Source: Cryptonomist

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