The price of bitcoin has continued to rebound on Wednesday, after briefly crashing below $40,000 at the start of the week.
The cryptocurrency experienced the longest continuous decline since 2018 in the first week of January, with market analysts warning that a severe sell-off could take place take place if it falls below the key psychological level of $40,000.
Funds are already being moved onto exchanges by some investors, with one anonymous wallet transferring more than $40 million in BTC onto Coinbase.
Other leading cryptocurrencies have experienced a similar downturn in fortunes to bitcoin, with Ethereum (ETH), Binance Coin (BNB) and Solana (SOL) all falling by around 20 per cent over the last seven days.
The only top 20 cryptocurrency by market cap to see any positive movement since the start of 2022 has been Chainlink (LINK), which has risen by more than 15 per cent in price.
You can follow all the latest cryptocurrency market news, analysis and expert price predictions in the live blog below.
Bitcoin price surges as US inflation hits 39-year high
15:33 , Anthony Cuthbertson
Inflation in the US rose by 7 per cent over the past year, the fastest it has risen in nearly 40 years. The consumer price index increase was largely expected by analysts, yet it still appears to have contributed to bitcoin’s sudden price surge today.
The weakening value of the dollar is seen as one of the leading reasons why investors are looking to place funds in the cryptocurrency, which is often referred to as “digital gold” due to its finite supply.
Investors should be weary, however, as the Federal Reserve is expected to raise interest rates this year in an effort to combat rising prices, potentially leading to a shift away from crypto and into traditional savings accounts.
Bitcoin price surges past $43,000
14:34 , Anthony Cuthbertson
Bitcoin is now up 5 per cent since yesterday, rising swiftly past $42,000 and $43,000 to close in on $44,000.
Pseudonymous crypto analyst PlanB is in typically buoyant form, tweeting: “The bounce will be epic.”
Despite missing out on his six figure price prediction for 2021, PlanB has stuck by his Stock-to-Flow forecast that sets bitcoin on a path to hit new record highs in 2022.
Kim Kardashian sued over alleged crypto scam
14:02 , Anthony Cuthbertson
Kim Kardashian is among several celebrities named in a class action lawsuit relating to the EthereumMax cryptocurrency, which crashed by 98 per cent following a series of high-profile endorsements.
“Are you guys into crypto????” she wrote to her 228 million Instagram followers in June last year.
Floyd Mayweather is also caught up in the legal action, after he featured the cryptocurrency’s logo on his shorts during his exhibition boxing match with YouTuber Logan Paul.
You can read the full story here.
Kim Kardashian sued over crypto that crashed 98% after she promoted it
Bitcoin price climb continues
10:13 , Anthony Cuthbertson
The price of bitcoin is continuing to recover from its worst start to a year since 2012, but it’s doing so at a crawling pace.
The cryptocurrency rose by less than 2 per cent over the last 24 hours to return above $42,000, though it’s still down more than 8 per cent week-on-week.
Other leading cryptos have seen an even greater mid-week bounce, with Ethereum (ETH), Binance Coin (BNB) and Solana (SOL) all rising in value by between 3-5 per cent. The biggest gains came from Avalanche (AVAX), which rose nearly 10 per cent to reach close to $100 per coin.
Bitcoin price approaches ‘death cross’
Tuesday 11 January 2022 14:29 , Anthony Cuthbertson
Bitcoin continues to hold above the psychological level of $40,000 on Tuesday, however the lack of positive movement means it is now approaching another key event – the dreaded ‘death cross’.
This is when the 50 day moving average falls below the 200 day moving average (see graph), which typically signals the end of a long-term bull run and the beginning of a bear run. The opposite market pattern, called a golden cross, took place last September, preceding a record-breaking rally for bitcoin.
You can read more about it here.
More star athletes back bitcoin
Tuesday 11 January 2022 10:30 , Anthony Cuthbertson
Klay Thompson, shooting guard for the Golden State Warriors, has become the latest star athlete to endorse bitcoin by taking part of his paycheck in cryptocurrency.
The NBA star joins Detroit Pistons guard Cade Cunningham, Green Bay Packers quarterback Aaron Rogers and LA Rams wide receiver Odell Beckham Jr to be paid in bitcoin.
“I’m with bitcoin because I believe it’s the future of money,” he tweeted.
Bitcoin price continues to climb
Tuesday 11 January 2022 10:15 , Anthony Cuthbertson
The price of bitcoin has returned above $42,000, as it continues its steady recovery since yesterday’s flash crash.
It is still down nearly 10 per cent since this time last week, and more than 35 per cent down from the all-time high it saw in November. It will take more than a slight climb to prove the downward trend has come to an end, but it has offered investors hoping for a rally some hope.
Bitcoin price bounces as experts predict ‘relief rally’
Monday 10 January 2022 20:06 , Anthony Cuthbertson
The price of bitcoin has managed to hold above $41,000, after its brief venture into the sub $40,000 territory earlier today. Where it goes from here will depend on a number of factors, but its short-term direction could ultimately determine the overall market sentiment and therefore future trajectory over the coming weeks.
We’ve heard from a couple of crypto experts, who are tentatively predicting that bitcoin could recover some of its losses, at least in the short term.
Here’s what Marcus Sotiriou, analyst at the UK based digital asset broker GlobalBlock, and Mike Novogratz, CEO of Galaxy Digital, had to say:
Despite the crypto market being in oversold territory, it is widely impacted by global markets and economic conditions. Plans declared by the Federal Reserve for rate hikes in 2022, as well as reducing the rate of monthly bond purchases, have contributed to bitcoin’s sell off so far.
On Wednesday, US inflation data will be released. The market expects the consumer price index (CPI) to rise 7.1 per cent for the year through December and 0.4 per cent over the month. If the figure released is larger than expected we can expect further sell pressure for bitcoin, as the markets are forward-looking and high inflation leads to more action from the Federal Reserve to control it. I think due to the selling we have seen in recent weeks, the downside is limited in the short term, even with higher-than-expected inflation data on Wednesday.
Marcus Sotiriou, GlobalBlock
I know big institutions who are going through their process to put positions on. They’re going to see those as attractive levels to buy.
Mike Novogratz, Galaxy Digital
‘When in doubt, zoom out’
Monday 10 January 2022 16:27 , Anthony Cuthbertson
Bitcoin has managed to return above $41,000, potentially signalling an end to the seven-day losing streak it has been on if it is able to hang on.
Crypto industry insiders and commentators have been offering their perspectives on the latest market downturn on social media.
This one from Dan Held, who works at the crypto exchange Kraken, is often repeated during times of price turmoil: “When in doubt, zoom out.”
Bitcoin price flash crash
Monday 10 January 2022 15:26 , Anthony Cuthbertson
The price of bitcoin just crashed below $40,00, before immediately bouncing back to its previous levels.
The recovery from the flash crash suggests support at that level, just as there was in September 2021 when it rebounded from around $39,550.
Bitcoin price sees longest losing streak since 2018
Monday 10 January 2022 14:01 , Anthony Cuthbertson
Bitcoin has fallen in price for seven consecutive days, marking its longest losing streak since August 2018.
It’s now down nearly 40 per cent since its November peak, with analysts warning that a further sell-off could be triggered if it falls below the crucial $40,000 level. The last time it was this low was in September 2021, when it bottomed out at $40,000 and bounce back to hit new record highs within two months.
You can read the full story here.
Hello and welcome…
Monday 10 January 2022 13:49 , Anthony Cuthbertson
to The Independent’s live coverage of the crypto market. We’ll be bringing you all the latest news and market analysis throughout the day, as well as forecasts from cryptocurrency analysts and experts.