Here's Why Bitcoin Is Freefalling Today

2 Causes for the BTC Flash Crash Today

In this post, I'll give a few reasons for the BTC flash crash today. We saw a dip down to around $42-$43,000 USD per BTC as speculators got liquidated and market sentiment flipped.. no I don't think we're in a bear market yet.

Suddenly, the price of Bitcoin dipped to a low around $45,000. It's hard to pinpoint an exact cause but there seems to be many factors at work here including just earlier this week when BTC was testing out 57 thousand dollars for Friday’s session which represents about 14%.

Cryptocurrency prices have seen major fluctuations over the past 24 hours as several digital coins fell significantly. Republicworld notes that "the total crypto market cap" - which stands at around $2 trillion today compared with just last month's value of 3 trillion dollars for a very short time period- has fallen by more than 50% since Friday evening."

Reason #1: The FED, which has had a significant impact on the markets as we know it today. Louis Navellier recently warned investors about their fears resulting from tapering by The Fed and what this could mean for Bitcoin prices going forward in his interview with Bloomberg Radio station WTOP:

“If you think back to the first time that quantitative easing was announced- nobody really knew how effective would be or if people wouldn’t start getting more reckless because there were never any consequences before." He went onto say "I don't have high hopes at all" when asked about Bitcoins future value; predicting an anticipated drop below $10K per coin.

Reason #2: The Omicron variant outbreak and the uncertainty surrounding its severity – which is still to be determined by vaccine efficacy- has investors running for their money.

The last week has been a roller coaster ride for Bitcoin and other cryptocurrencies. The price of one bitcoin was up to $8,500 per coin on Saturday before experiencing another dramatic downturn that brought it down below $6K by Wednesday morning (a 66% gain).

Although I am still cautiously optimistic about what will happen with our favorite virtual currency this season, there is no denying we are in uncharted territory right now- even compared cryptocurrency history!

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