Bitcoin Plummeted by 22% in 3 Days! Here’s How to Profit in Bear Market
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The crypto market is once again painted in red. Over the past two weeks, the crypto market cap has fallen from around $2.2 trillion to a four-month low of $1.7 trillion according to CoinGecko. And Bitcoin (BTC)’s price is no less than a suspense thriller movie these days. From Jan. 20 to Jan. 22, it plunged from $43,500 to $34,000, with a slump of nearly 22% within only 3 days! It reached the lowest point since July of last year. Bitcoin is finally making some big moves and we can expect the next few days to be highly volatile.
The cryptocurrency market sentiment which has been displaying extreme fear intensified after this sharp decline. Crypto Fear & Greed Index has even reached 11 on Jan. 23 (the lower the index, the more fear).
What comes with the downtrend moves and fear sentiments are a series of bad news:
On January 19th, U.S. president Joe Biden explained that the country’s central bank was dealing with a large share of the inflationary pressures. To combat ongoing inflation, The U.S. is decreasing the dollar’s monetary supply through quantitative tightening. JPMorgan CEO Jamie Dimon recently stated that the Federal Reserve might raise interest rates up to seven times. At the same time, the crypto market is also under pressure.
Outumuro pointed out in his report that a similar trend was noticed in Bitcoin’s price movement in 2018 when inflationary pressures and monetary supply decreased. This correlation between the monetary supply change and Bitcoin’s price has been increasing since then. If the monetary supply decreases going forward, Bitcoin’s future outlook could turn increasingly bearish. This is because
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