• Bitcoin price lost its crucial $23K resistance level
• Major macro events could be the reason for the crypto market downfall
• Bitcoin and other large cap cryptocurrencies are highly correlated with tech stocks
The crypto market kicked off the year 2023 on a high note, with most cryptocurrencies reaching high trading areas. But the market has since taken a U-turn, with most large cap currencies registering a loss. The Bitcoin price has dropped by nearly 1.5% in the last 24 hours and is now trading at $22,656, while the lead altcoin, Ethereum, has lost 4.57% and is now trading at $1,553.
Investors have become less optimistic about Bitcoin’s price action, which could be a major factor behind the currency’s downward movement. Bitcoin and other large cap cryptocurrencies are highly correlated with tech stocks, so the recent macro events may have caused the crypto market to suffer.
The last three weeks of January have seen strong performance from cryptocurrencies, but the market is now in a downward trend. This could be due to the fact that investors have become less optimistic about Bitcoin’s price action, and that the currency is highly correlated with tech stocks. In addition, macro events in the market could be a major factor in the decline of the crypto market.
Bitcoin’s decline in value has been mirrored by other major cryptocurrencies, with Ethereum, XRP, and Cardano all registering losses in the last 24 hours. With this in mind, investors need to be aware of the risks associated with the crypto market, as a sudden and unexpected change in the market can lead to significant losses.
The crypto market is ever-changing, and investors need to stay up to date with the latest news and developments. By keeping an eye on any major macroeconomic events taking place, investors can be better equipped to make informed decisions regarding their investments.