After briefly surpassing the price of $ 58,000 last Monday, Bitcoin fell to $ 44,239 at the time of filing this report. The cryptocurrency has also already fallen 21% this week. This may turn out to be the biggest weekly drop for bellwether crypto, if losses are maintained throughout the weekend, since the second week of March last year, when prices fell 33%, according to data from Coindesk. The current price of Bitcoin was the lowest of $ 44,716 on February 9, 2021.
Since Monday, the price has largely been on a downward slope, with the exception of a few surges going from $ 45,393 Tuesday to $ 51,600 Thursday and from $ 44,647 Friday to $ 48,330 Saturday. This decline can be largely attributed to rising bond yields and losses in global stock markets. According to Coindesk, the yield on the 10-year US Treasury rose to 1.61% in a year higher on Thursday. This has taken the gain since the start of the year to more than 50 basis points and triggered fears of a premature unwinding of the US Federal Reserve’s stimulus which pushed equities, bitcoin and gold to the decline. According to data from CoinMarketCap, falling Bitcoin prices lowered its market capitalization from $ 1.04 trillion last Sunday to $ 833 billion at the time of filing of this report.
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“It’s a market that has been ridiculously overbought and likely will be again in the not too distant future,” Craig Erlam, senior market analyst at OANDA Europe, said in a note Friday, Bloomberg reported. Bitcoin prices, on the other hand, had seen an unprecedented rise in the past year. From $ 3,865 as of February 19, 2019, prices increased 15x to reach $ 52,000 last Monday. It peaked at $ 40,000 in the second week of January of this year, but dropped to $ 30,000 towards the end of the third week of January. Currently, there are 8,612 cryptocurrencies in circulation with a combined market cap of $ 1.34 trillion, with Bitcoin dominating 61.6% of the total value. After Bitcoin, the other major cryptos Ethereum, Steller, XRP, and Cardano had market caps of $ 153 billion, $ 42.27 billion, $ 40.98 billion and $ 38.08 billion, according to data from Coindesk. .
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