Bitcoin broke below support in the upper forty-thousands that it held for weeks, taking the rest of the crypto market with it.
The crypto market is tanking following a negative day on Wall Street, taking Bitcoin’s price to lows it hasn’t seen in 3 months.
Hours ago, the primary cryptocurrency was trading in the upper $46k range. Beginning at around 19:40 UTC, its price collapsed down to $45k.
Prices continued to fall over the next two hours, with prices now below $43k at the time of writing.
The event hasn’t been kind to bulls. Coinglass data shows $500 million in crypto liquidations having taken place over the last 4 hours alone.
The price plunge has coincided with a 1.9% fall on the S&P, and a 3% fall on the NASDAQ.
The market-wide dip may have been spurred by resurging rumors that the Fed could start raising interest rates early this year to combat inflation. US inflation was 6.8% this November – a nearly 40-year high.
Bitcoin has moved in reaction to inflation statistics before, given its recognition as an inflation hedge. In November, Bitcoin touched an all-time high after October’s inflation numbers were released.
The leading crypto was stuck in limbo since a liquidation cascade last month down to $50k. It now appears to have broken free of its range, further towards the downside.
Andrew is content writer with a passion for Bitcoin. He became familiar with Bitcoin back in 2013, but began diligently studying the blockchain technology and its economic implications in 2017. Ever since, he’s believed in the network’s power to replace the current global monetary system, and provide financial freedom to billions worldwide.
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