empty
24.01.2022 11:56 AM
Bitcoin plunges below $34,000

The flagship cryptocurrency fell below $35,000 on Monday. At the moment of writing, bitcoin somewhat recovered and was traded at $35,182.

BTC's downward momentum continues on Monday. The token's value fell below $34,000 on Saturday to its lowest level unseen since the summer of 2021. Overall, the world's most popular digital asset lost 18% last week.

This image is no longer relevant

The top altcoins followed suit and started to go down. Last week, Ethereum tumbled by 27% and Cardano plummeted by 17.1%, while Solana and Polkadot plunged by 35%.

According to CoinGecko, a popular digital currency ranking website, the capitalization of the cryptocurrency market nosedived by 22% to $1.72 trillion last week.

Market participants continue to close their positions on BTC amid a fall in the US equity market. On Friday, stock indices dropped sharply. Besides, January may turn out to be the worst month on Wall Street in the past 14 years.

Last week, the leading S&P 500 index was incurring losses for four days out of five. A weekly pullback exceeded 5%, the worst performance since the fall of 2020.

In addition, the stock price of the biggest cryptocurrency companies is decreasing. MicroStrategy, the largest holder of BTC lost 17% on Sunday and over 31% since early January. Grayscale Bitcoin Trust was down by 13% on Friday alone. The strengthening of the downtrend in stock markets could lead to a more noticeable pullback in cryptocurrencies, experts say.

Meanwhile, El Salvador bought another 410 BTC, taking advantage of the substantial decline in the main cryptocurrency. The Central American country already owns more than 1,500 digital coins. Bitcoin officially became legal tender in El Salvador in September 2021.

Due to unpredictable behavior in the cryptocurrency market, experts are forced to make the most unexpected predictions about the future of digital assets. Nowadays, the cryptocurrency market is on the verge of a new supercycle, Quantum Fintech Group founder Harry Yeh noted. It could lead to BTC skyrocketing to $400,000. According to Harry Yeh, the hawkish Federal Reserve and widespread adoption of stablecoins, digital coins whose value is tied to tangible assets, could trigger a new cycle.

Less optimistic crypto experts suggest bitcoin and the global digital asset market will enter a prolonged downtrend. So, bitcoin risks collapsing to $20,000, and market capitalization plunging to $830–$900 billion.

Irina Maksimova,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Iran-Israel peace hint rattles markets: What's happening to oil, gold and currencies

Crude oil prices slip, retreating from multi-month highs after Iran retaliates Wall Street stocks close higher, European shares fall Dollar rises against yen, falls against franc; euro recovers European stocks

Thomas Frank 14:00 2025-06-24 UTC+2

US Market News Digest for June 24

The S&P 500 and other benchmark indices have kicked off the new trading week with positive momentum, supported by technical indicators. The uptick follows a strong signal from the Marlin

Ekaterina Kiseleva 12:59 2025-06-24 UTC+2

Iran attacks exacerbate oil crisis: S&P 500 freezes ahead of key US data

US attacks on Iran raise concerns about oil, retaliation S&P 500 near February highs but showing signs of stagnation Rising oil prices raise concerns about inflation, Fed policy Investors look

Thomas Frank 12:44 2025-06-23 UTC+2

US Market News Digest for June 23

Geopolitical tensions weigh on markets Investors remain cautious amid escalating Middle East tensions, awaiting potential Iranian retaliation. While market reactions have been muted so far, further conflict escalation could trigger

Ekaterina Kiseleva 12:31 2025-06-23 UTC+2

Supply risks fuel oil, Asia gains, dollar stays afloat

Asian stock markets rise on Friday Oil hovers near 4-1/2-month peak on supply shock risks Dollar resilient on safe-haven demand despite mixed signals from Fed Swiss franc steady after

Thomas Frank 10:55 2025-06-20 UTC+2

Investors confused: data weak, policy hawkish, hopes pinned on bonds

Treasury yields pared earlier losses after Fed Chair Powell's remarks. Middle East tensions linger as Iranian leader rebuffs Trump's surrender demands. Swiss National Bank cuts rates to zero. Stora Enso

14:05 2025-06-19 UTC+2

Investors are confused: data is weak, policy is aggressive, hope is in bonds

Treasury yields pare previous losses after Fed Chairman Powell's speech Middle East concerns remain Iranian leader rejects Trump's demand for capitulation Swiss National Bank cuts interest rates to zero Stora

Thomas Frank 13:58 2025-06-19 UTC+2

Crypto market unaffected by Fed's policy decision. Bitcoin adamant to hit $205,000 by year end

Following yesterday's Federal Reserve meeting, where the central bank kept its benchmark rate unchanged, markets showed little reaction. Stock indices remained within their current ranges, and Bitcoin avoided sharp price

Larisa Kolesnikova 10:45 2025-06-19 UTC+2

Bitcoin still immune to geopolitical tensions, but military conflicts could rattle crypto market

According to analysts, the ongoing military conflict between Israel and Iran could have a significant impact on the digital asset space. In case of a negative outcome, the crypto market

Larisa Kolesnikova 14:08 2025-06-18 UTC+2

Futures trading with gains while markets in limbo. Market participants respond to Fed's signals and geopolitics

Futures contracts rise: Dow +0.21%, S&P 500 +0.28%, and Nasdaq +0.35%. Markets await Fed's policy decision. Swedish central bank cuts interest rate. Airbus lifts dividend target, boosting shares. Gerresheimer jumps

13:47 2025-06-18 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.