According to the data of CoinMarketCapOn the morning of January 21, Bitcoin price suddenly dropped to 38.853 USD, down 7.36% from the previous 24 hours.
Notably, Bitcoin price once recovered above the threshold 43.000 USD a few hours ago before turning sharply lower. Bitcoin’s market capitalization shrinks to 748 billion USD.
Compared to the peak 68.789 USD/dong was established in November 2021, Bitcoin price has dropped by more than 42%. This is also a record low in nearly 4 months.
Bitcoin’s decline has a negative impact, causing the market capitalization of the cryptocurrency market to plunge 7.65% to 1.820 billion USD.
The cryptocurrencies in the group of 10 coins with the largest capitalization are all in the red. Ether – the world’s second largest cryptocurrency – also saw a drop of 8.88% and lost a key milestone 3.000 USD. Cardano – the sixth largest coin – saw the biggest drop of almost 10%.
The sharp market correction occurred after the Central Bank of Russia proposed to ban the use and mining of cryptocurrencies in the territory due to concerns about financial stability, public welfare and monetary policy. .
Besides, the case of Crypto.com floor was hacked and taken away by hackers 33 million USD is also seen as a negative catalyst for the price movement of Bitcoin.
According to Jay Hatfield – CEO of Infrastructure Capital Advisors – cryptocurrencies could continue to come under pressure as the Fed reduces the amount of money injected into the economy. In the worst case scenario, the expert warns Bitcoin price could end 2022 below the threshold 20.000 USD.