Last Monday, the largest digital currency collapsed to its lowest level since July last year, according to the crypto exchange Sollmybit.
The coin tested values below $33,000 on some trading platforms, but on Tuesday it was able to bounce back. Compared to the peak values recorded in November, the value of BTC has fallen by almost 5%.
In the middle of the week, the price bounced to $37,762. Traders believe that the crypto market has already entered a bearish phase, which may stretch over the next few months.
A similar situation was observed in 2018. Then, as a result of the so-called “crypto winter”, the value of bitcoin collapsed by 80% compared to the values reached at the end of 2017.
Sollmybit analysts predict the dominance of bearish sentiment, at least until the summer. Over the past year, the market has been flooded with speculators and various dubious projects, including the NFT industry.
A cooling of sentiment was inevitable. In addition, the correlation of BTC and the American stock market affected.
The fall of the S&P 500 indicator by more than 8%. The withdrawal of capital from risky assets led not only to a fall in the shares of the technology sector and bitcoin, but also provoked the strengthening of the dollar.