Bitcoin’s bullish run has finally come to its end- with the exorbitant rally hitting a major speed bump- which further puts it on a weekly slide. And incidentally, this is the worst weekly slide that the cryptocurrency has seen in over a year. It has been proposed that this slide could actually lead to major losses in risk assets. According to reports, the largest cryptocurrency went down around 21% the current week. It has also been noted that the Bloomberg Galaxy Crypto Index which tracks Bitcoin and a few other cryptocurrencies has also staggered down by 23%.
Bitcoin Is Going Down, But The USD Is Climbing Back Up
The price of Bitcoin went down to almost $45,535- where it reached a key level in the Fibonacci equation at a point around $45,000. After that, it did manage to cover a few losses and reached $46,375. This came at around 6.21 am in London- and was reported by Bloomberg.
Many critics had already predicted that Bitcoin would see a market crash- due to the wider chaos that is taking place in global markets. This is a result of a major surge in the bond yields- which are caused by the increasing levels of both inflation and growth. This has led to traders already reevaluating where they stand amidst the varied asset classes. NASDAQ 100 also went down in the last seven sessions, with several stocks like Peloton Interactive and Tesla going down at the same time.
Vijay Ayyar, one of the heads of Luno previously mentioned that most risk-on assets were susceptible to such hits at this current time. Most of them were already looking into stocks sliding downwards- with cryptocurrency following. In hindsight, the USD is actually gaining strength rapidly- which could be a very good sign for cryptocurrencies like Ether and bitcoin.