Bitcoin prices dropped last week after trading in the $24k zone for several weeks due to the inability to withhold the support levels. The $21k region has served as the new range for the bitcoin price, which has been held there throughout the weekend. This Monday’s cryptocurrency markets are essentially unchanged, with little variation in the volume of 24-hour trade for Bitcoin, Ethereum, and other significant crypto assets but not in the price.
Summary
- The bitcoin price dropped to $21k after failing to hold the $24k level.
- Bitcoin transaction costs fall below $1 and hit 2-year lows.
- Fears of further rate hikes afflict the markets as stocks continue underperforming, thereby contributing to the overall gloomy state of the markets.
- This past week, Ethereum underperformed and lost more value than Bitcoin.
- Following the price movement of the Tech markets, Bitcoin is anticipated to stay within its current range, at least throughout this week.
Bitcoin News Update
The huge decrease in transaction fees is currently the most important Bitcoin news. The typical BTC transaction cost managed to fall under $1, the lowest level in the previous two years.
The average bitcoin transaction fee is $0.8246 at this writing, the lowest level since April 2020, according to ycharts.
Contrary to popular opinion, the average daily transactions and the number of transactions per block stayed largely stable over the past year. Accordingly, the decline in transaction fees is probably the result of declining market prices and rising mining difficulty, resulting in less of a backlog in BTC’s mempool and hence lower transaction costs.
Stock Trading News Update
In related news, it’s important to keep in mind the present state of traditional markets because Bitcoin closely mirrors the price movement of the stock market. The Dow futures are down 300 points to start the week, and the S&P 500 and NASDAQ futures are down more than 1%, according to a report from CNBC today.
As concerns about future rate increases from the Federal Reserve and the European Central Bank resurface, the decline in the U.S. markets coincides with the large declines in the European markets. Interest rate increases are intended to aid the world economy and reduce inflation, but they also put downward pressure on stock markets when people withdraw their money from equities and put it in cash.
We have seen the result of this Interest rate increase take a ton on the general crypto market some months back, as it always brings fear and uncertainties to the market.
What Does Bitcoin’s Next Move Look Like?
The current $21k level will likely remain as the support for the price of bitcoin this week since it is being tested. It’s improbable that Bitcoin (BTC) will soon return to the prior $24k levels while the global markets continue to suffer. This means that more dip could be expected, which will happen once BTC goes below this current support level.
However, since Bitcoin somehow mirrors the Tech Market’s movement, if the tech markets see another bull run, Bitcoin’s price will probably continue to rise.
With a $405 billion market cap, bitcoin is presently trading at $21,217, still maintaining its dominance in the general cryptocurrency market. Unfortunately, Ethereum underperformed this week, falling by more than 17% in the previous seven days, and its market valuation dropped below $200 billion, currently standing at $190 billion.
Lastly, the global market valuation for cryptocurrencies is still above $1 trillion despite the massive sell-off and steady declines. It is expected to stay within this mark for the rest of the week.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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