Bitcoin lost 14% YTD, worse than ever started

Bitcoin fell below $ 40,000 for the first time since September last year, and is down 14% since the start of the year.

According to financial app Zhitong, Bitcoin fell 6% in the New York market to $ 39,774 before rebounding from the day's low. Bitcoin has fallen more than 40% since reaching an all-time high of nearly $ 69,000 in November.

Fiona Cincotta, Senior Financial Markets Analyst at City Index, said: “2022 is starting to be very depressing. There are a lot of results. We know Bitcoin is not stable, but we are seeing a big change in Bitcoin.

Created by an anonymous person or group named Satoshi Nakamoto after the 2008 global financial crisis, Bitcoin has grown almost 500% since late 2019.

The ubiquitous virus has pushed Bitcoin into key assets as businesses and investors engage in the cryptocurrency industry and governments and midsize banks provide information. As the Fed has turned hawkish, risky assets such as commodities and digital earnings have been affected.

Jay Hatfield, CEO of Infrastructure Capital Advisors, said, “Cryptocurrencies will continue to be in turmoil as the Fed cuts revenues,” said Jay Hatfield, CEO of Infrastructure Capital Advisors. "Bitcoin could fall below $ 20,000 by the end of 2022."

Bloomberg Intelligence analyst Mike McGlone says $ 40,000 is an important level of support for Bitcoin. The price of cryptocurrency determines the current decline in risk appetite. However, he is hopeful that Bitcoin will eventually become a marketable commodity as the world becomes more digital.

“The Fed's tightening not only affects interest rates, but also puts investors at risk as the Fed pulls out of private equity. The loss of businesses, stocks, and cryptocurrencies presents a higher risk than other assets. Assets are more affected, because of these. Assets are twice as risky as stocks because they are about double the total market, "said Hatfield.

Data collected by wealth management company CoinShares shows that around $ 207 million in digital assets are released each week, breaking all records. Of this amount, Bitcoin's outflows are estimated at $ 107 million.

Noelle Acheson, head of marketing analytics at Genesis Worlds, noted that Bitcoin's plunge appears to have been driven by short-term traders rather than long-term holders. In fact, his research shows that long-term holders "go further."