Bitcoin economy along with altcoins took a serious blow on 13th December 2021 yet the data from the derivatives anticipates value to be US$ 47,000 but would the market be able to hold that level or not?
Bitcoin underwent yet another massive correction on Monday, 13th of December, 2021. The day was quickly given an unforgettable title as “bloody Monday” in the history of Bitcoin.
On ‘bloody Monday’, Bitcoin eventually lost its support value of US$ 47,000 and became US$ 46,467. On the other hand, the economy of altcoins also saw a major reduction of at least 25% on the same day.
When Bitcoin’s economy was reduced by 8.5% on Monday, analysts attributed the fall to the upcoming meeting of the Federal Open Market Committee. The fear amongst Bitcoin investors is that the Federal Reserve will squeeze down its program of bond repurchasing. Consequently, a reduction in bond repurchasing will adversely affect assets that are more akin to risks because of the revision in existing monetary policy. Therefore, the investors would want to pocket their profits from the riskier assets before prevailing of any uncertainties in the market.
Although the economies of Bitcoin as well as of altcoins are down presently, yet Bitcoin’s overall performance is better than altcoins. If Bitcoin has lost 8.5% value but on the other hand altcoins’ value decline was 25%. This could lead the investors to go for Bitcoins instead of altcoins because Bitcoin investment poses lesser risks than altcoins.
Considering the fact that massive correction occurred in digital currencies’ economy on 13th December, yet the market conditions are promising. There were massive losses borne by almost all cryptocurrencies, including the top coins i.e. Bitcoin and Ethereum. Luckily for Bitcoin, there is this lack of demand from the side of short-term Bitcoin buyers. If the demand would have been on the higher side, then the value could have dropped lower than the altered support price of US$ 46,000 for Bitcoin.
Judging the current market conditions for Bitcoins, analysts think that for the time being promising change for Bitcoin wouldn’t be forthcoming. Instead, Bitcoin is likely to move into 2022 with a price range of US$ 47,000.