The prices of both bitcoin and Ethereum have dropped significantly in recent weeks. BTC is trading in the low $30K range, while Ethereum at the time of writing has fallen to about $2,200 per unit.
Bitcoin and Ethereum Continue Their Falls
One crypto expert – who simply goes by the name Wendy O on TikTok – explained that the bitcoin price could wind up falling even further before any significant signs of recovery step in. in a recent video, Wendy explained:
Unless we break the trend line at approximately $37,000, I’m calling for $29,000 in the coming weeks or week.
One of the big problems as of late is that stocks everywhere are falling, and while many analysts would choose to deny this, there is a definitive link between both stocks and BTC. When stocks fall, bitcoin will usually follow suit, and this time around is no different. The stock markets have taken massive dips in recent days, and thus bitcoin is beginning to tank.
Armando Aguilar – head of alternative strategies and research for digital asset savings platform Ledn – explained in an interview:
The overall market has noticed the high correlation to bitcoin prices and the general equities markets. The S&P 500 and NASDAQ have had the largest correlations to bitcoin with 0.88 percent and 0.91 percent, respectively. A correlation of one means that they move equally one to the other.
With stock prices being what they are, many Wall Street players have chosen to sell off their stock shares and deal with losses accordingly before things get even worse. This selloff is not helping anything, and thus the prices of all assets – including bitcoin – continue to suffer. Edward Moya – senior market analyst at foreign exchange brokerage Oanda – mentions:
Bitcoin is breaking below some key technical levels as the never-ending selloff on Wall Street continues. The institutional investor is paying close attention to bitcoin as many who got in last year are now losing money on their investment. If the USD $30,000 level breaks, that could trigger a flash crash environment if several whales unload.
Dipping Even More Than Thought Possible
Wendy O said in another video that the recent bitcoin drop isn’t a big surprise to her, though it has certainly come sooner than she anticipated. In a previous video, she predicted that the bitcoin price would fall to about $33K in July. Here we are in May and the price is even lower than that. She said:
I tweeted this April 17, 2022: ‘I am getting 2021 April-May vibes, which means potential bearish until July. Things I’m watching [include] price action, inability to effectively breakout, NFTs go off.’
Overall, bitcoin has shed more than 50 percent from its all-time high which was achieved last November. During that month, the world’s number one digital asset by market cap was trading for around $68,000 per unit.
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