The crypto market is currently absorbing loss and recovering after witnessing a bloodbath yesterday. The crypto market bled heavily yesterday after Bitcoin dipped to 39k, losing over $3500 of its price value in a single day. Many had earlier supposed that Bitcoin topped at 48k after testing this level in the first week of April.
This week has become a feast for the bears who recaptured the market and dragged down the price of all crypto assets to dust again. Bitcoin price lost over 6% of its value this week, dragging its price down to as low as $39200 on Monday. Other crypto assets have even witnessed a more significant loss in value than Bitcoin. Ethereum lost over 8% of its value, bringing the price down to as low as $2941. Cardano (ADA) lost over 10% of its value bringing the price to $0.915. Litecoin fell as low as 9.5%, bringing the price to $1.2. The Stellar Lumen (XLM) fell by 6%, bringing the price to $0.1854.
This week’s fall in crypto-asset was triggered by concerns over the imminent inflation data and interest rate hikes to take effect soon. Many investors considered it necessary to withdraw their investments from high-risk assets to invest in dollars, given the expected high-interest return.
Consequently, the crypto market saw the most significant decline in its total market Capital in a single day, with over $400million withdrawn by investors on Monday alone. Currently, Bitcoin is gasping for recovery with temporary support created at $39,700. If this support holds, we might expect a return above 40k, probably towards the first resistance at 42k. However, if this support fails, we might be headed for more loss which might take us down to $37,500.
Many believe that the bears are exhausted and feel it is now an opportunity to buy the dip in crypto as we await a revival again.