Bitcoin bounced off $ 40,000, ether from $ 3,000

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“Bears” have not yet been able to push the leading cryptocurrencies below round marks. BTC briefly dropped to $ 39,650 and ETH to $ 2,927, but both managed to rebound.

Bitcoin hit an all-time high of $ 69,000 in early November, and today its price has dropped 40% below that value. Bitcoin broke through support at $ 34,000 but recovered very quickly above $ 41,000.

In general, the beginning of the year after its 13th birthday turned out to be difficult for Bitcoin, and its fall may be a continuation of the dynamics of the previous week. The main reason lies in the willingness of the US Federal Reserve to raise interest rates earlier than expected to curb inflation. The Central Bank of South Korea also recently announced that it is ready to take the same measures to improve monetary policy.

Cryptocurrency analyst Michael van de Poppe
wrote on Twitter that when bitcoin “plunges” below $ 40,000, the fear will intensify. He added that people expect the markets to decline further, so they are considering the possibility of a partial sale of bitcoin. Many believe that Bitcoin has just begun to fall, so now the scenario of a “bear market” is being implemented, concluded van de Popp.

The Block Analyst Frank Chaparro
suggestedthat during this year bitcoin and ether are unlikely to be able to “step over” the recent historical maximum due to the tightening of central bank policies. Earlier, the CEO of the Kraken exchange Jesse Powell said that if Bitcoin falls below $ 40,000, it is worth taking this opportunity and buying BTC for long-term storage.

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