Bitcoin tumbles below $47K — safe to say Bear market begins?
Bitcoin has suddenly recorded a fall below $47,000 on December 4, losing nearly 20 per cent in the last 24 hours. The latest figures make it the biggest one-day drop since May 15, when Bitcoin’s price had momentarily tumbled down to around $33,000.
The market price of Bitcoin had fallen down 26.4 per cent from the week-long support of $57,206 is going down to $42,268 before it recovered back to the $45k mark.
According to data from Coinglass, the Bitcoin market has experienced $1.3B total liquidations in the last few hours, with $735M liquidated in Bitcoin longs on this drop.
As a result, Bitcoin’s bear market has cancelled out the 2-month long bull market that was in place since September 29, where it had soared over 63 per cent in attaining an all-time high of $67, 602 by November 08. However, numerous Bitcoin enthusiasts and analysts, including TechDev, have pointed out a similar trend with Bitcoin’s price action for each year.
Another reason resulting in Bitcoin’s two-month low bearish streak has been anticipated in its mainstream resistance from the US regulators that have invited senior executives and CEOs of prominent cryptocurrency exchanges, including FTX and Binance US, for a congressional hearing on crypto-assets.
Some analysts also believe that the price of Bitcoin would now stabilize after the decline. Michaël van de Poppe, CEO of Eight Global, a crypto education platform, has stated that despite concerns around volatility and non-compliance with traditional financial practices, Bitcoin is continuing to rise as a “viable asset for jurisdictions with unstable economies.”
Following the steps of El Salvador, the government of Zimbabwe has also reportedly been considering the mainstream usage of Bitcoin. Retired Brigadier, Colonel Charles Wekwete, currently the Permanent Secretary and Head of President’s Cabinet on the e-government technology unit, has also confirmed that discussions with crypto businesses are already underway.
According to Wekwete, the responsible authorities are intending the development of regulations for protecting consumers against financial threats like unregistered cross-border transfers, money laundering and externalization of money.
