The price of Bitcoin has fallen to its lowest point in two months. Is the bottom at $42K or could the price fall further?
Biggest drop since May
Bitcoin suddenly fell sharply today and even briefly fell below $42,000. The price thus lost more than 20% in 1 day. This makes it the biggest one-day drop since May 15.
More specifically, the BTC price fell 26.4% today from the $57,206 support level. The BTC price dropped to $42,268 before returning above $45,000. According to data from Coinflass, the Bitcoin market has seen a total of $1.3 billion in liquidations in the past hour, with $735 million liquidated in BTC longs on this decline.
$42,000 was the bottom
In addition to the enormous liquidations, the resistance of the American regulators is also mentioned as the reason. And the Omicron variant of the COVID virus certainly does not help either. Still, some believe that Bitcoin will now stabilize and USD 42,000 has been the bottom.
Despite the crash, it is still easy to see that Bitcoin is a great asset for countries with unstable economies. Zimbabwe is now considering accepting Bitcoin. The country wants to follow in El Salvador’s footsteps.
Despite concerns about volatility and non-compliance with traditional financial practices, Bitcoin continues to rise as a viable asset for jurisdictions with unstable economies. Charles Wekwete, the permanent secretary and head of the office of the e-government technology unit of the president and cabinet, confirmed that talks with companies are already underway.