Bitcoin (BTC) is down 7.5% in the past 12 hours, falling to a six-month low of $43,328 at 16:00 UTC on Thursday to $38,258 at 04:00 UTC on Friday.
Bitcoin is trading at $38761 at the time of writing, according to Cointelegraph.
The price drop has wiped out about $50 billion from the overall crypto market so far. The total value of the cryptocurrency market has been slowly declining since the beginning of November 2021, when it peaked at $3 trillion.
With no news of a bomb that many may blame for dumping it, investors are wondering why the price has moved. Some pointed to macroeconomic indicators, with Nasdaq tech stocks heading into “the right territory” and interest rates expected to rise in 2022.
But bitcoin is moving in mysterious ways. It may also be news that bitcoin bull Raul Pal has apparently sold all his bitcoins with only 1 BTC left…
Rekt Capital’s Twitter account notes that the current unfolding pattern ” bears some resemblance to price action at the end of September 2021″. During this time, bitcoin dropped from $52,000 to $41,300 several times from September to October. In early November, it continued to rise to $69,000.
The InvesetAnswers Twitter account, which has more than 85,000 followers, noted that the bears “need Bitcoin below $41,000 to generate $132 million in profits.”
BTC isn’t the only cryptocurrency to crash on Friday. Ether (ETH), Binance Coin (BNB), Solana (SOL), Cardano (ADA), and XRP have all experienced significant corrections from -6.3% to -10% over the past 12 hours.
Related: BTC ‘likely’ to repeat the movement in Q4 2020 – 5 things to see in Bitcoin this week
Among the top 10 coins by market capitalization, the ADA suffered the largest overall loss, dropping by 10% to $1.21. SundaeSwap’s buggy Friday launch doesn’t seem to be helping matters.
Forbes contributor Billy Bambro noted in an article published on Friday that investors were alarmed by recent statements by the US Federal Reserve that it would cut its balance sheet and raise interest rates.