Last Thursday, Bitcoin (BTC) fell by more than 10%. On some exchanges the coin collapsed to $35,611 – the lowest value since January 21, according to Bloomberg.
Then BTC partially recouped, and on the night of Friday, May 6, it is trading at $36,307.
Almost all major Altcoins suffered big losses. Ether (ETH) fell 8.7% to $2744, while Binance Coin (BNB) and Solana (SOL) fell 6.42% and 7.98% to $376 and $84.5 respectively. The value of all digital currencies fell to $1.668 trillion.
According to Josh Lim of Genesis Global Trading, the market collapse was inevitable after the Federal Reserve went to raise its discount rate. The risky assets with which Bitcoin correlates were hit hard.
The exit of institutional capital from the Cryptosphere as early as last week was an alarming signal. According to CoinShares, crypto funds lost about $120 million. Over the past four weeks, the outflows totaled $339 million.
Josh Olszewicz, who heads Valkyrie Investments’ research division, doesn’t rule out that bitcoin could sag even lower if stock indices remain in the red.
According to this analyst, it is too early to talk about reaching the bottom, and most likely the retreat of BTC will continue.