{"id":1989,"date":"2022-02-18T13:28:38","date_gmt":"2022-02-18T13:28:38","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=1989"},"modified":"2022-02-18T13:28:38","modified_gmt":"2022-02-18T13:28:38","slug":"whats-behind-bitcoins-sudden-plunge-to-40000","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=1989","title":{"rendered":"What&#8217;s behind Bitcoin&#8217;s sudden plunge to $40,000?"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n <\/p>\n<p>Thursday saw a renewed decline for Bitcoin as the leading cryptocurrency plunged to $40,090. A bounce followed, leading to a tight trading range between $40,300 and $40,900.<\/p>\n<p>Currently, Bitcoin is trading at $40,800, down 5% in the last 24-hours. However, fears are this sell-off could be the start of more downside to come.<\/p>\n<h2>Bitcoin price analysis<\/h2>\n<p>Bitcoin experienced a 9% swing to the downside yesterday, having posted a daily high of $44,200 in the early hours (GMT). The knock-on effect saw a loss of $154 billion from the total crypto market cap.<\/p>\n<p>The biggest top 100 losers over the last 24-hours are Rally, down 14.6%, then Terra losing 9.5%, closely followed by Kadena, also trading down 9.5%.<\/p>\n<p>Source: CoinMarketCap.com<\/p>\n<p>Analysis from MMBTtrader on the market leader, Bitcoin, concludes, as things stand, if major support at $39,000 \u2013 $40,000 holds, the market remains bullish.<\/p>\n<p>Drilling down further, MMBTtrader noted $46,000 was a strong resistance level, with February 10 seeing a rejection at this level.<\/p>\n<p>This latest downtrend takes the market just above a bearish zone (pictured as a black oval in the chart below.) Should Bitcoin enter this zone, MMBTtrader expects further downside, with $35,300 being the next level of support.<\/p>\n<p>Source: TradingView.com<\/p>\n<p>\u201cAs we can see on the chart too 46K$ is major resistance for the price and only after a valid breakout to the upside we can expect more pump here also 39K-40K is major support here and if this support remains valid market remains bullish.\u201d<\/p>\n<h2>What\u2019s behind this?<\/h2>\n<p>According to The Motley Fool, this sell-off is attributed to the uncertainty of pending, more onerous U.S regulations.<\/p>\n<p>\u201cThe White House appears ready to push for regulation on the cryptocurrency industry and that uncertainty alone is spooking investors.\u201d<\/p>\n<p>The latest reports on this matter state President Biden will issue an executive order next week calling U.S government agencies to formulate a national strategy in respect of regulating cryptocurrencies.<\/p>\n<p>This would also involve studying central bank digital currencies, including a technical evaluation on the practical implementation of a digital dollar.<\/p>\n<p>The Motley Fool article concludes by saying although the market has reacted pessimistically, long-term, a national framework is a positive development that will bring clear guidelines on conducting crypto business.<\/p>\n<p>However, at the same time, it\u2019s unclear whether the current administration is pro-crypto. Based on recent dealings, it\u2019s assumed not.<\/p>\n<p>\u201cCompanies and investors have been trying to get Congress and regulators to write favorable rules for years, but they\u2019ve been fighting an uphill battle so far.\u201c<\/p>\n<p>The worst-case scenario would be a national framework that hampers digital currencies, taking away any benefits of investing in them.<\/p>\n<p>For now, we await further news.<\/p>\n<p>Posted In: Bitcoin, Analysis <\/p>\n<p><h2>CryptoSlate Newsletter<\/h2>\n<\/p>\n<p>Featuring a summary of the most important daily stories in the world of crypto, DeFi, NFTs and more.<\/p>\n<h2>Get an edge on the cryptoasset market<\/h2>\n<p>Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/whats-behind-bitcoins-sudden-plunge-to-40000\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Thursday saw a renewed decline for Bitcoin as the leading cryptocurrency plunged to $40,090. A bounce followed, leading to a tight trading range between $40,300 and $40,900. Currently, Bitcoin is trading at $40,800, down 5% in the last 24-hours. However, fears are this sell-off could be the start of more downside to come. Bitcoin price [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1990,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-1989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/1989","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1989"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/1989\/revisions"}],"predecessor-version":[{"id":1991,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/1989\/revisions\/1991"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/1990"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}