Bitcoin Started New Year on Bad Note, Price Declined 16.8% in January
- In January 2021, bitcoin gained 14.18 percent in value.
- BTC investors sold out in response to the US Fed Reserve statement.
With increasing bond rates and other government policies taking a toll on bitcoin’s price in January 2022, the most popular cryptocurrency lost more value than in the same month last year. At the beginning of January, Bitcoin had a market value of $46,306.45 per BTC, but when investors priced it low, it dropped to $38,483.13 on January 31, 2022, a 16.8 percent loss in 31 days.
In January 2021, bitcoin gained 14.18 percent in value, completing the month with $33,114.36, compared to $29,001.72 at the beginning of the month. Since bitcoin’s asking price fell by $7,823.32 at the same time last month, it has lost all of its January 2021 gains, totaling $4112.64.
Read More: Bitcoin Price Prediction
Inability to Withstand Policy Shocks
The difficulty of bitcoin in January to remain over $40,000 indicated the coin’s incapacity to resist policy shocks or tie-down investors from looking at alternative assets to hedge inflation.
In the fourth quarter of 2021, China, cracking down on BTC miners and exchanges, dealt a massive blow to bitcoin. Even if the effect of the repatriation of the US bond was minor, the situation remained grave. Short-term BTC investors sold out in January in response to the December statement that the US Federal Reserve was aiming to boost bond rates to entice investors, resulting in a drop in BTC value.
This shows that even though bitcoin had grown to be the breakout asset of the present decade, the bond still had a say in the path of BTC, even if the latter had become the safe-haven asset of the year.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
