• About
  • Contact
  • Privacy Policy
  • Terms and Conditions
Tuesday, September 16, 2025
The VR Soldier
  • Featured
  • News
  • Education
  • NEAR Protocol
  • Solana
  • Fantom
  • Yield Farming
  • Reviews
  • Press Releases
No Result
View All Result
  • Featured
  • News
  • Education
  • NEAR Protocol
  • Solana
  • Fantom
  • Yield Farming
  • Reviews
  • Press Releases
No Result
View All Result
The VR Soldier
No Result
View All Result

Bitcoin Showing Strong Support at $48,000, Why Did the Price Drop?

margin707 by margin707
December 5, 2021
in News
Reading Time: 3 mins read
0
bitcoin price
10
SHARES
Share on TwitterShare on Facebook

After the recent cryptocurrency market correction, Bitcoin and Ethereum both rebounded sharply. Most cryptocurrencies only registered single-digit percent losses, with some seeing bullish momentum. At the time of writing, Bitcoin price continuously shows strong support at $48,000 as it attempts to breach the $50,000 level once again.

The recent crypto market pullback erased over $600 billion from the global cryptocurrency market cap. When it comes to the reason behind the recent bearish move, some will cite the spread of Covid’s Omicron variant, while others will blame the Fed for recently suggesting higher interest rates.

With news of the Omicron variant spreading across the US, the market action is reminiscent of July’s crash when information regarding Covid’s Delta variant spread.

The good news is, we’re seeing similar market action to what happened in July, with crypto markets rebounding sharply only a few days after the crash.

Another reason for this weekend’s bearish momentum could be the Fed raising interest rates, discouraging investors from putting their money in crypto and stocks.

According to Coindesk, in November, Federal Reserve Chair Jerome Powell announced that the Fed would start scaling back on purchasing Treasury bonds and mortgage-backed securities. The program is scheduled to be depleted in mid-2022 to reduce inflation.

In addition to the above two factors influencing Bitcoin’s recent price, the House Committee announced that crypto CEOs would testify on December 8th in a hearing on digital assets.

According to a tweet posted by Jeremy Allaire, Co-founder & CEO of Circle, the committee will discuss crypto and national economic competitiveness for the United States.

Looking forward to hearing next week with @RepMaxineWaters, ranking member @PatrickMcHenry, and the full committee (@FSCDems) to discuss Crypto and national economic competitiveness for the United States. https://t.co/rVHAvaPMUd

— Jeremy Allaire (@jerallaire) December 1, 2021

While calling CEOs to discuss the challenges and benefits of financial innovation is not bearish news in and of itself, the potential increase in regulation resulting from that meeting could be detrimental to crypto markets overall.

The United States is already behind China when allowing traders to invest in ICOs, IDOs, and more. For example, Binance is not available to users in the US, and some of the hottest and most influential projects are first available on Binance. The restriction means US investors are excluded from a large crypto sector and don’t even get an opportunity to participate in high ROI presales.

The good news is, crypto markets are holding the current support level quite well, With Bitcoin currently trading at $48,684 and Ethereum at $4,100.

Bitcoin is inching towards the $49,000 – $50,000 level, looking to establish new support. While the recent pullback may seem drastic to some, a 20-30% loss isn’t a reason to panic for most crypto holders.

While December is known to be Bitcoin’s hottest month, a pullback before a bull run is not uncommon. If Bitcoin can establish $50,000 as support in the short term, chances of dropping below $40,000 are slim. However, if Bitcoin cannot breach the $50,000 resistance, don’t be surprised if we see another correction.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency.

Also Read:

Top 7 Metaverse Coins With a Unit Price of Under $0.1

Follow us on Twitter @thevrsoldier to stay up to date with the latest cryptocurrency news, and subscribe to our daily newsletter to never miss another story!

Tags: bitcoin
Previous Post

Livepeer Price Up 33% After Media Foundation Partnership Announcement

Next Post

Top 5 Metaverse Coins Built on Solana

Related Posts

XRP’s Coinbase Supply Crash Sparks Q4 Rally Speculation
Market Analysis

XRP Coinbase Supply Crash Sparks Q4 Rally Speculation

September 16, 2025
Featured

Pakistan Moves to Regulate Digital Asset

September 14, 2025
shibarium-shib-hardfork 1
Featured

Shibarium Bridge Hit by $2.4M Exploit

September 14, 2025
coinbase-ceo-bitcoin-Brian Armstrong 1
Featured

Coinbase Explains How Token Listings Work

September 14, 2025
XRP Targets a Breakout as Bulls Eye a 20% Surge
Market Analysis

XRP Targets a Breakout as Bulls Eye a 20% Surge

September 13, 2025
Featured

Bitcoin Takes a Breather After Record High – But the Bulls Aren’t Done Yet

September 13, 2025

Press Releases

XRP Aims for $4 as ETF Buzz Heats Up: Can the Hype Hold?
News

XRP Aims for $4 as ETF Buzz Heats Up: Can the Hype Hold?

by Alex Mercer
September 10, 2025

Ripple’s XRP is flirting with the $3 mark again, thanks to a tidal wave of speculation around a potential ETF...

Read more
Bitcoin 12.8% Dip Looks More Like Flexing Than Failing

Bitcoin 12.8% Dip Looks More Like Flexing Than Failing

September 2, 2025
Whales Stack Nearly $1B in XRP – Is $4 Now on the Horizon?

Whales Stack Nearly $1B in XRP – Is $4 Now on the Horizon?

September 1, 2025
Why Ethereum ATH Could Crush Bears Before Q3 Ends

Why Ethereum ATH Could Crush Bears Before Q3 Ends

August 12, 2025
Ethereum’s 28-Day Countdown: Will Ethereum Smash Through $3,030 Next?

Ethereum 28-Day Countdown: Will Ethereum Smash Through $3,030 Next?

July 20, 2025
The VR Soldier

© 2024 The VR Soldier

Navigate Site

  • About
  • Contact
  • Privacy Policy
  • Terms and Conditions

Follow Us

No Result
View All Result
  • Featured
  • News
  • Education
  • NEAR Protocol
  • Solana
  • Fantom
  • Yield Farming
  • Reviews
  • Press Releases

© 2024 The VR Soldier