Bitcoin Recovers Above $40K After Dipping Earlier to 6-Week Low

Bitcoin is trading at about $40,100 after falling nearly to $38,200.

AccessTimeIconApr 25, 2022 at 7:11 p.m. UTC
Updated May 11, 2023 at 4:53 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Bitcoin (BTC), after a big price swing over the past week, traded earlier Monday at its lowest point in almost six weeks.

As of press time the largest cryptocurrency by market capitalization was up 1.3% in the past 24 hours, trading at $40,127. Earlier, the bitcoin price fell as low as $38,202, the lowest since March 15.

  • “Recent volatility has been driven by factors such as inflation, the Ukraine crisis [caused by Russia’s invasion] as well as contractionary monetary policies,” said Daniel Khoo, research analyst at Nansen. “This has affected not only the stock market but also the crypto market, which seems to follow in tandem recently.”
  • Khoo said this fall in prices could be driven by the short-term negative sentiment as people go risk-off on volatile assets.
  • “Many investors are also shifting towards [stablecoins] given the uncertainty and short-term bearish outlook as the market has become too hot and periods of extreme euphoria were followed by market corrections historically,” Khoo said.
  • “The crypto markets tumbled this morning, as bitcoin failed to hold the $40K level,” wrote Marcus Sotiriou, analyst at the U.K.-based digital asset broker GlobalBlock. “Fears about a 50-basis point rate hike have strengthened after Federal Reserve Chairman Jerome Powell’s comments last Thursday.”
  • Powell said Thursday that “it is appropriate, in my view, to be moving a little more quickly.” He said raising the benchmark U.S. interest rate by 50 basis points (0.5 percentage point) “will be on the table” for the next Federal Open Markets Committee (FOMC) meeting in May, in remarks at the International Monetary Fund debate.
  • “Even though we have a more hawkish Federal Reserve which could lead to more pain for global markets in the short term,” said Sotiriou, “I am still cautiously bullish.”
  • “Bitcoin’s on-chain metrics are contrastingly bullish,” wrote Sotiriou. “Data from Glassnode shows that the percentage of bitcoin’s supply that has not moved in one year is at an all-time high. I think this data tells us that whilst these macro headwinds are ongoing, bitcoin is being distributed from those who see it as a risk-on asset, to long-term holders who have strong conviction in bitcoin’s long-term potential.”
  • Ether (ETH) was up 0.87% in the past 24 hours, trading at $2,972.
  • U.S. stocks were mixed as China’s COVID-19 restrictions stiffened, with the S&P 500 down 0.7% and the Nasdaq up 0.2%.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Angelique Chen

Angelique is a market contributor at CoinDesk.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.