Bitcoin price is up 2.08% at $40,360.12 in the early Monday session.
The price of Bitcoin collapsed on Monday, plummeting 6.24%, closing below the $40,000-mark at $39,535.87. In almost two months, this decline is the most, following global stock indices. BTC plummeted under the 50-day moving average dashing hopes of uptrend in April in a sharp move. The cryptocurrency fear and greed index lost 12 points to 20 by Tuesday, in a state of “extreme fear.”
The drop in crypto markets came as recession fears mounted in the U.S. on Monday following hawkish comments by the Fed. Market participants expect accelerated rate hikes of +50 points in May and June. This is in stark contrast to the previously expected 25 points rise per quarter. Liquidity leaves the financial markets in this environment, hitting the highest risk sectors the hardest. Hence, the steep drop in cryptocurrency capitalization and the Nasdaq index.
A pledge to amass $10 billion worth of bitcoin by Seoul-based Terraform Labs has aroused the market. This is part of a broader movement to crown bitcoin as the reserve currency of a new age. These acquisitions and the anticipations of more to come are supporting the price of bitcoin, with some market players identifying them as a significant driver of bitcoin’s climb towards the $48,000 level at the end of March.
On the technical side, the RSI of Bitcoin stood at 40.03 and is currently trading below SMAs; MA (5), MA (20), and MA (50). So, SELL position can be initiated with the following target and stop loss: