While crypto trading surged to $139.93 billion, the price of Bitcoin dipped drastically as it tumbled under $41,000 per digital coin. The most popular cryptocurrency touched $40,938, which is its lowest since September 2021. The prices of other cryptocurrencies fell too. Ethereum tumbled by a substantial 7.40% while most other altcoins suffered on January 7, 2022.
The latest market crash follows hawkish minutes from the Federal Reserve's meeting other than what markets had anticipated. The latest Federal Open Market Committee (FOMC) minutes suggested it may raise the interest rates. FOMC is a monetary policymaking body responsible for designing policies to promote stable prices and economic growth.
Millions of crypto investors burned their hands buying the dip. It's been a bad start of the year for the crypto king Bitcoin (BTC-USD), and crypto analysts say that 2022 could bring in more pain as the market could crash further. The entire market had a huge correction and one thing investors aren't aware of is that Inflation is going to last longer than they anticipated.
While some bulls forecast $100,000, Gareth Soloway, president and CFO of InTheMoneyStocks.com doesn't see that happening anytime soon.
"Long term, I love cryptocurrency, I love Bitcoin. But the charts â and I'm a technician â are just not showing that," Soloway told Yahoo Finance Live adding, "Bitcoin for me, has a nasty head-and-shoulders pattern on it. Believe or not, in early 2022, or early 2023, you could see a move down sub-$20,000 in Bitcoin."
"We've seen Bitcoin hovering between $52,000 and $46,000 for the last month. And it keeps hitting on that $46,000 level. So on a technical basis, if you break below that $46,000...you are going to see downside to about $42,000, the low from early November," Soloway further said.
Will Bitcoin Crash Again?
Yes, crypto researchers say that Bitcoin is definitely going to crash again. However, Bitcoin is growing faster than the internet and the coin will hit a billion users most likely by 2025.
Bitcoin Price Today
According to CoinMarketCap, Bitcoin is currently trading at $41,991.23 up by +0.76% in a days trade with a market cap of $794,644,362,519.
Meanwhile, the International Business Times advises crypto enthusiasts and new investors to be well aware of the latest crypto trends in the market and not fall for any trading rumors.
According to CoinMarketCap, Bitcoin is currently trading at $41,991.23 up by +0.76% in a days trade.