Bitcoin’s price plummeted earlier this month, crashing down to below $60,000, which is half its all-time high value. After a brief rebound above $70,000, it fell again to $66,000 by midday on Wednesday, down 47% from its October record high.
Critics are enjoying the cryptocurrency’s struggles, while others are worried about their investments. The drop was caused by liquidations and uncertainty over Federal Reserve chair appointments, which led investors to avoid riskier bets like crypto.
The US government reported that 130,000 jobs were added in January, doubling economic forecasts. However, this news may not have helped Bitcoin’s price, as the Labor Department also made significant cuts to its employment numbers, undermining the announcement.
Bitcoin exchange-traded funds (ETFs) saw large selloffs, adding to the pressure. Historically, Bitcoin has bounced back after a “halving” event, but some experts predict that the four-year cycle is “dead,” while others claim it’s intact. Some even think Bitcoin could plummet to $30,000 or zero.
As one expert said, “The supply of ‘greater fools’ that bitcoin relies on is drying up.” This suggests that the market may be losing its support for the cryptocurrency. With this in mind, investors are left wondering if Bitcoin can recover from its current slump.
Source: https://futurism.com/future-society/bitcoin-starts-fall-again