Bitcoin Drops the Ball in Memory of 2011 | Daily News 1/7/22
👇 Right now, the crypto dip buyers 🔖💲 are forming in masses with news of the big buys such as El Salvador acquiring an additional 80 BTC at $19,000 and Microstrategy purchasing an additional 480 BTC 💸 over the last two months! Of course, although there is hope 🤞 that news and price won't continue in the red, the big strategies are certainly telling a story!
📕 Closing the month, yesterday showed us that selling pressure was clearly on a strong hold, dipping the price of Bitcoin by almost 7%, closing the month about 37% down 🔻! Ether and all the altcoins also followed suit as expected, as well as the equities market; notably the S&P 500 finishing the first half of the year with its biggest downturn since 1970! 😱
Although some traders and investors are speculating 🤔 there could be one more ugly plunge, some even saying to around the $10K area, such risks certainly aren't deterring the ‘El Salvador’s’ and the ‘Michael Saylor’s’ of the crypto space. Let's find out more!
Bitcoin is currently trading in this new month at just over $19,600 after a rollercoaster of price action ↕️ as you can see in the hourly chart below! To give you a brief snapshot of the last 24 hours, BTC has been knocked off the ‘old’ block 5 days running, 🔴 dropping in price to almost ending the month at just over $18,500. However, in the final hours of the day, Bitcoin was able to rebound to almost $21k ⤴️, with this type of volatility usually expected on the month close! Only until retracing back to just over $19,600, which is where we currently are. At this pace, retracing back to over $18,500 is more of a possibility!
The BTC/USDT hourly chart shows we broke briefly the bearish trend line in blue, but more downside is likely to continue for now.
Bitcoin is seeing its steepest price decline since Q3 of 2011 🤯 and activity on the blockchain is nose-diving with BTC’s spot volume, showing the total amount of coins transacted on the chain has dropped over 58% in the last 10 days! The main contributing factor to these drops is down to the 🌎 global macroeconomic state of the world; thanks to skyrocketing inflation and rising interest rates, the traditional markets are also getting pounded 🥊💫! These difficult economic times have led to mass amounts of layoffs, especially in the crypto sector, and proving that the crypto and equities markets are closely related; traders/investors need to see the bigger picture and not be so ‘crypto focused’ only!
😎 Now time for the silver lining we are sure you’re ready to hear.
🏰📜 Once upon a time, on exchanges far far away, investors were able to buy Bitcoin for $1 then $100. Heck, even $1000! But by the end of last year, BTC was valued at over 🟢 $69,000! For investors who entered late to the game, however, owning 1 whole BTC to join Bitcoin's “21 Million Club” was out of reach for the average investor. As prices have dipped back to levels more affordable, data has shown us that wallets holding 1 BTC or more, increased over the last few weeks. Meaning that the ‘demand’ is VERY much alive ⏫ and many across the globe are snapping up these opportunities!
👉 So let us know in the comments, are you buying more? Here’s a resource you can use to learn how to lock-in that crypto you may want to buy!
Ether, the second-largest cryptocurrency by market cap, also dropped 🔻 yesterday and dipped its toes ever so briefly under the $1,000 level, down almost 7% over the week. Other major altcoins also contained various shades of red since yesterday but most are on the up now, with Avalance (AVAX) tumbling down almost 5% in the last 24 hours and Polkadot (DOT) over 3% down.
The Sandbox (SAND) has been one of the 👍 better performers of the alts, up almost 13% since yesterday. For the second day running, our very own NAGA coin (NGC) 🏆 is leading the charge of the alts, up OVER 13% 📈 in the last 24 hours!
💡 Have you got your hands on any NGC yet? Read here to see all the benefits, including the ability to earn up to 20% staking! Something we are certainly very excited about and making full use of in this current bear market!
📉 Yesterday’s crypto drop went a bit further than the major stocks 💹, which closed with modest losses. The tech-focused Nasdaq fell 🔻 about 1.3%, while the Dow and S&P 500 each declined by less than a percentage point. But the S&P 500 as a whole finished the first half of this year with its biggest downside price drop 😮 since 1970, according to CNBC Finance.
Yesterday’s Event: The PCE (Personal Consumption Expenditure)
📋 The PCE Index is one of the Federal Reserve’s favourite measures 👌 of inflation and yesterday, the report showed it had jumped up 6.3% ⤴️ in May from last year, remaining relatively unchanged from the previous month of April! The report provided the latest evidence that painfully high inflation is putting more pressure on American households and harming in particular 😓, families of low income.
Overall, these disturbances 💢 to labour supply & production, material shortages, etc. continue to put pressure on prices 💲. Also, the after-effects from the Russian invasion of Ukraine and the lockdowns in China carry on upsetting global supply chains while the Fed raises 🔺 borrowing rates. For consumers, rapidly rising prices is hurting income and knocking down the outlook’s confidence in the economy, which remains very uncertain. And this is why we have seen the financial markets crumble 📉 over the last few months!
👉 Did you study 🕵️♂️ this week's upcoming events that we listed for you last Monday? We do this weekly so bookmark and read it to keep you up to date with what is happening, what events to look out for, and how they will affect the global markets!
- Bitcoin closed the month with record lows - but the big buys keep coming in!
- Altcoins followed but are now recovering.
- NAGA Coin (NGC) is still one of the best performing alts right now; got yours?
- The S&P 500 finished the first half of the year with the biggest downside since 1970!
- PCE report yesterday added to the conclusion of the markets breaking down
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