Bitcoin (BTC) has suddenly dropped below $ 47,000 on December 4, losing almost 20% in the last 24 hours. This makes it the biggest drop in a day since May 15, when the price of Bitcoin momentarily dropped to almost $ 33,000.
The market price of BTC fell 26.4% from the one-week support of $ 57,206 to drop to $ 42,268 before recovering again to the $ 45,000 mark. According to data from Coinglass, the Bitcoin market experienced total sell-offs of $ 1.3 billion in the last hour, with $ 735 million settled in BTC longs in this dip.
As a result, Bitcoin’s bear market nullifies the 2-month bull market since September 29, where BTC soared more than 63% to hit an all-time high of $ 67,602 on November 8. However, numerous Bitcoin analysts, including TechDev, point to a similar trend with Bitcoin price action for each year.
Every #Bitcoin cycle in history has ended with a red month followed by 2 or 3 very green months. pic.twitter.com/zr1055PvkL
– TechDev (@ TechDev_52) October 18, 2021
Every Bitcoin cycle in history has ended with a red month followed by 2-3 very green months.
Another reason for Bitcoin’s two-month bearish streak can also be attributed to mainstream resistance from US regulators who have invited the CEOs of prominent crypto exchanges, including FTX and Binance US, for an audience on crypto assets.
On the other hand, some believe that the price of Bitcoin may now stabilize after the decline. For example, the CEO of cryptocurrency education platform Eight Global, Michaël van de Poppe, stated:
Bottom is in.
– Michaël van de Poppe (@CryptoMichNL) December 4, 2021
The bottom has come.
Despite concerns around volatility and non-compliance with traditional financial practices, Bitcoin continues to rise as a viable asset for jurisdictions with unstable economies.
Following in the footsteps of El Salvador, the government of Zimbabwe is considering the widespread use of Bitcoin. As Cointelegraph reported, the retired brigadier colonel Charles Wekwete, Permanent secretary and head of the e-government technology unit in the office of the president and cabinet, confirmed that talks are already taking place with the companies.
According to Wekwete, the authorities intend to develop regulations to protect consumers from financial threats such as unrecorded cross-border transfers, money outsourcing and money laundering.
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