SPONSORED POST *
Bitcoin (BTC) begins its first full week of 2022 in a now habitual territory under $ 50,000. Since the end of December 2021, Bitcoin has experienced a red market with several drops of varying degrees. On January 5, it even dropped below $ 43,000, plummeting nearly 10% in just 8 hours. Bitcoin is finally making some big moves and we can expect the next few days to be highly volatile.
Red market for Bitcoin and cryptocurrencies
Sentiment in the cryptocurrency market, which has experienced extreme fear, has intensified after a prolonged period of sluggish performance and the recent slump. The Crypto Fear & Greed Index went from 24 yesterday to 15 hours (the lower the index, the more fear there is).
What comes with the bearish movements and feelings of fear is a series of bad news:
Equity markets and strong Fed corrections
US equity markets corrected to close after minutes of the Federal Reserve’s December FOMC meeting showed the regulator is committed to reducing its balance sheet and raising interest rates in 2022. With the correction in the equity markets, the price of BTC has followed the example dropping below $ 44,000, triggering a cascade of liquidations that reached $ 222 million in less than an hour.
“Bitcoin will be volatile in this period, both an effect of the volatility of the stock market, but also from sharp corrections by the Fed”,
Charles Edwards, founder of asset manager Capriole, noted in a series of tweets on January 3.
Continuous control over the regulatory policies of multinationals
One after another, cryptocurrency regulatory policies make Bitcoin prices face tougher challenges. As one of the largest cryptocurrency mining countries in the world, theIran is shutting down cryptocurrency mining centers again to reduce the consumption of liquid fuel in power plants at a time of falling temperatures. Meanwhile, Kosovo joins Kazakhstan, Iran and Iceland in imposing restrictions on Bitcoin mining due to the overload of energy networks. Furthermore, i UK MPs are pushing for more regulatory oversight of crypto assets this year and South Korea’s National Tax Service announced that from January 2022, citizens are required to pay taxes for cryptocurrency payments.
Bitcoin network hashrate plummets by 13.4%
Wednesday, the Kazakhstan, the second largest country in the world when it comes to Bitcoin mining hashrate, has had unprecedented political turmoil. State-owned Kazakhtelecom shut down the nation’s internet, plunging network activity to 2% of daily high levels. The measure dealt a severe blow to the Bitcoin mining business in the country, which accounts for 18% of the hash activity of the global Bitcoin network. According to data compiled by YCharts.com, the overall hash rate of the Bitcoin network decreased by 13.4% in the hours after shutdown from around 205,000 petahashs per second (PH / s) to 177,330 PH / s. It undoubtedly has a great impact on global Bitcoin mining.
Further losses in BTC
From the daily chart of the BTC / USDT pair, the price of BTC has been hovering around $ 45,000 for a long time. After breaking through this price, Bitcoin continued to drop. The EMA (Exponential Moving Averages) Cross had a death cross on December 22, which was almost a prediction of the collapse of the BTC price around this time. All in all, BTC has totally dropped 37.5% from an all-time high of $ 68,000 to the current price of $ 42,500. Most analysts believe it has entered a race to the bottom.
How to profit from the bearish run?
If you want to profit from a bear market, you may need to know 100x leveraged futures trading. With the futures trading with 100x leverage, you can buy high (go long) or sell low (go short), which means you can take profits whether the market goes up or down. Plus, 100x leverage can amplify your profits by 100x.
How does 100x leverage work?
Traders can open a position with only 1% required margin with this tool. For example, if we used 1 BTC to open a short contract at a price of $ 46,800 on January 5th and close it 8 hours later when Bitcoin was trading at $ 42,500, our profit would be ($ 46,800 – $ 42,500) * 100 BTC / $ 42,500 = 10.11BTC , making the ROI of over 1000%.
Recommended trading platform with 100x leverage
Bexplus is one leading platform in crypto derivatives trading which offers 100x leverage futures trading on various trading pairs: BTC, ETH, ADA, Doge, XRP, etc. Bexplus does not require KYC and is popular with over a million traders from around the world. Also, it is safe to be credited by the Money Services Business (MSB).
Advantages of Bexplus:
- 100% bonus for every deposit.
- Bitcoin wallet with an annualized interest rate of up to 21%.
- Demo account with 10 BTC for traders to familiarize themselves with leveraged trading.
- No KYC requirements, sign up with email verification in minutes.
- Intuitive and complete app on the Apple App Store and Google Play.
- 7/24 hours one-to-one service to solve your problems at any time.
- Fast withdrawal with no time limits and no deposit fees.
Sign up for Bexplus to get a 100% deposit bonus!
* This item has been paid for. Cryptonomist did not write the article nor test the platform.