The bull market in the cryptocurrency market is in serious jeopardy as BTC’s price has slumped by over $16,000 since its all-time high registered on December 17.
Interestingly, there has been an ongoing negative trend following the latest acquisition streak related to MicroStrategy, as the firm continues to announce new purchases every Monday.
BTC Dumps to Monthly Lows
It was less than two weeks ago when the landscape around the primary cryptocurrency seemed highly bullish. It kept charting consecutive all-time highs, with the latest coming on December 17 at just over $108,000. Thus, the asset had gained roughly $50,000 since the US presidential elections on November 5.
However, this was when the US Federal Reserve concluded its last FOMC meeting for the year, and even though the interest rates were slashed as expected, some hawkish comments by Chair Jerome Powell turned the entire market upside down.
BTC started dumping hard in value and slumped to $92,000 three days later. Although it managed to bounce off in the following week and even challenge $100,000 on a couple of occasions, it ultimately failed, and the subsequent rejections drove it south hard.
Bitcoin took another turn for the worse today as its price dumped by a few more grand, slumping to $91,330 (on Bitstamp), which became its lowest price tag since November 27. The altcoins have joined the negative ride, with XRP and ADA dumping by over 6%, while many meme coins have been hit even harder.
MicroStrategy to Blame?
Today’s price slump came just a few hours after the Nasdaq-listed business intelligence software giant announced its consecutive BTC purchase. MicroStrategy has now made such announcements for eight consecutive Mondays.
Although taking BTC off the free market sounds like a bullish development, almost all Monday purchases by the Saylor-founded company have been followed by immediate corrections. On November 25, BTC stood above $99,000 but quickly slumped to under $91,000.
On December 2, bitcoin had jumped to $98,000 but dropped to $93,000 after MicroStrategy’s announcement. On the following Monday, BTC was above $101,000 before it crashed to $94,000. On December 16, it stood north of $106,000 but retraced to $103,500 within the same day. Lastly, It traded at $96,200 on December 23 before another correction drove it south by three grand.
Today’s price decline has resulted in a drop to a multi-week low, for now, but BTC risks dumping even further if it loses the $90,000 support level. In fact, some analysts argue that if it breaks that support, it could slump to and below $80,000.
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