The January 2022 bear market has extended as bitcoin hit new lows last seen in July 2021. As of this writing, the leading crypto was priced at $35,232.76, a level which one has to go back to 26th July 2021 to find.
In the last 24 hours it can be seen that BTC was variously below the $35,000 mark, sparking fears that the drawdown may extend and stretch below $29, 000 – its lowest point in the 2021.
At the current level, it means the price has fallen nearly 50% since hitting its latest ATH at a widely reported $68k on November 10, 2021. Ever since, its been a sure climbdown that has seen BTC drag altcoins with it.
Following the dip, here is how much value some top coins have shed since their ATH:
BTC – 50%
ETH – 52%
ATOM – 39%
FTM – 49%
LUNA – 49%
BNB – 50%
AVAX – 64%
SOL – 66%
DOG – 83%
However, despite the weekend’s drastic drop and the month’s bearish trend, many people are urging investors to buy the dip – This is crypto speak for buying when the prices are low, as the upside is greater.
This of course with the expectation that the markets are going back up.
A glance at yearly market activity shows that probably will be the case.
In April 2021, Bitcoin reached its then peak of more than $63,000, but similar to now, had lost 50% of its value in 3 months – hitting $29,795.55 at the lowest in July 2021.
Apart from crypto’s typical volatility, analysts point that the weekend’s drastic fall comes on the back of the January 20, 2022 dip in the U.S stock market. Investors across the board are concerned about how the anticipated Federal Reserve interest-rate increases will affect the market.