Bitcoin Weekend Plunge: 50% off Record Highs

Cryptocurrency traders have been suffering a slow painful death after the Fed ran out of excuses in tackling inflation. In just a few months, Wall Street had to reprice a much more aggressive Fed tightening strategy that made Bitcoin go from having a simple correction, to entering bear market territory, and now has fallen over 50% from its record highs.

Many crypto traders were anticipating one last plunge before jumping back in, but the regulatory environment got a lot cloudier now that the White House may soon unveil some national security challenges posed by cryptocurrencies and the Fed’s paper on central bank digital currencies didn’t answer any questions on if we will see a digital dollar or how they could work with stablecoins.

The majority of retail and institutional traders that got started in crypto in 2021 are now in the red and their patience may not be as long lasting as traders who are used to Bitcoin’s extreme volatility during major de-risking events. Bitcoin should have support ahead of the $30,000 level, but if that breaks it could be a freefall to $22,500.

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Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.