The market cap of all digital currencies recently dived at 4%, bringing it down to $976.45 Billion. This is not a good day for the digital currency ecosystem. Bitcoin's price, which had been on an impressive rise streak to finish out the month of January at a value that may stand as its greatest lift in three months, has taken a hit due to the negative run.
The leading crypto Bitcoin has experienced a loss of 0.83% over the previous twenty-four hours and is currently trading at $22,446. Ethereum (ETH) has shed off 1.25% to $1,539.32.At the same time, Avalanche (AVAX) is up by 1.5% to $17.20, Solana (SOL) was up by 1.5% to $23.
A recent article by Bloomberg suggests (1) that the continuing bear market in crypto currencies has a notable undertone with the broader market. The decline may be traced back to Microsoft Corporation.
The American multinational technology giant reported a disappointing sales prediction, which dashed the aspirations of investors who had been under the impression that the worst was over for technology equities.
Bitcoin benefited from the fundamental bullish sentiment that enveloped the financial ecosystem because the Federal Reserve & Central, the world's banks, would taper down the battle against inflation by stringently hiking interest rates this year.
This allowed Bitcoin to capitalize on the favorable environment. The crypto currency market participated in the upswing that was seen across the board by following the trend of its strong association with tech equities.
Many people assume that the Federal Reserve will keep reducing interest rates. Still, experts are warning and hinting that stakeholders should scale back their expectations for the Fed's next policy meeting, which is slated to take place the following week.
Are Traders Expecting a Price Reversal?
The recent decline in that price is quite exceptional compared to Bitcoin's pricing at the beginning of the year. Because investors have recently reverted to their more pessimistic expectations, several analysts who talked to Bloomberg think Bitcoin may have recently hit a cliff.
According to Tony Sycamore, an industry analyst with IG Australia Pty,
"the market is now thinking twice about how much farther to push them."
The chief executive officer of a social trading platform named, Hayden Hughes feels that the short covering that has pushed the price of the flagship coin for the more significant part of this year appears to be dwindling.
It is not unusual for market participants and leaders to hold contradictory views on the values of bitcoins. Even while some Bitcoin supporters believe that this year will be a good one for the crypto currency, another school of thought sees the most recent growth run as an opportunity to get rid of the coin.
