On Monday, the price of bitcoin once again jumped and it recovered from a 6-month low. This was due to a resurgence of buyer interest in bitcoin. Bitcoin fell to a six-month low earlier this week ahead of fears of a Russian attack on Ukraine and a Federal Reserve meeting this week. Bitcoin price closed up 2.5% at $37,250, having fallen earlier to $32,951. This was the lowest price of bitcoin since July 23.
Bitcoin touched its all-time high of $69,000 in November. Since then its price has fallen by 50 percent. Bitcoin is now at a critical juncture where analysts say further selloff could reverse its long-term bullish trend.
Fed meeting is starting from Tuesday
Earlier on Monday, rising tensions between Russia and Ukraine led to a decline in bitcoin. NATO has said it is keeping forces on standby and strengthening Eastern Europe with additional ships and fighter jets. Russia denounced Ukraine as escalating tensions. The Federal Reserve’s two-day policy meeting is scheduled to begin on Tuesday. The panic it created also affected the price of bitcoin.
Right now people are avoiding risk
Cryptocurrencies have come down along with other riskier assets as people are widely avoiding risk taking. Katie Stockton, founder of technical analysis firm Fairlead Strategies, says that bitcoin’s close this week above the $37,400 level will be positive. But if it fails to move beyond this level, the long term uptrend could reverse and it could decline again.
Nearly $465 Million Liquidated in Crypto Assets in 24 Hours
According to data from Coinglass, approximately $465 million in crypto assets have been liquidated in the last 24 hours, with bitcoin trades accounting for $167 million. Ether was down 3.5% at $2,451. Ether had earlier declined to $2,160. This was its lowest level since July 27.