Bitcoin Price Drops Below $32,000

On Monday, May 9, bitcoin quotes updated at least since the summer of 2021. The price of the first cryptocurrency fell below $31,600.

Hourly BTC/USDT chart on Binance exchange. Data: Trading View.

According to CoinGecko, over the past day, BTC has fallen in price by 7.6%, over the week – by 17.8%. Following the flagship, all crypto assets from the top 10 by capitalization were in the red zone.

Ethereum is trading at $2,329, losing 7.9% in a day. BTC dominance index – 39.4%, ETH – 18.2%.

Data: CoinGecko.

According to Coinglassthe daily volume of liquidations in the futures market exceeded $270 million.

Unfavorable market prospects have led to a drop in the index of fear and greed to 11 points (“extreme fear”).

On May 8, Glassnode’s lead analyst, Checkmate, noted that “many are waiting for the fuse of bitcoin capitulation.” The latter is usually characterized by a relatively long, sudden and catastrophic price drop, like collapse in March 2020.

“If this happens, and this is really a capitulation, most people will not buy [биткоин]because the fear is too great. It has always been and always will be, ”Checkmate emphasized.

Analyst Caleb Franzen noted the downward trend and did not rule out that “more pain is to be expected.”

May 5, following a short surge in quotes once morest the background of raise Fed key rate price of the first cryptocurrency began to fall rapidlyclose to $35,000.

In April, former BitMEX CEO and co-founder Arthur Hayes predicted the fall of bitcoin to $30,000 at the end of the first half. He attributed this to a possible decline in the Nasdaq 100 (NDX), with which digital gold is highly correlated.

Analysts at Arcane Research have confirmed that the statistical relationship between Bitcoin and the Nasdaq index peaked from July 2020.

Recall, trader and head of Factor LLC Peter Brandt allowed the price to fall digital gold to $28,000.

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