Bitcoin ends its worst week in eight months

On Sunday, January 23, the price of Bitcoin stabilized after a week that was the asset’s worst in eight months. At the time of writing, the leading cryptocurrency trades above $35,300.

Over the past seven days Bitcoin’s price has fallen 18.1%, over the month 30.6%, according to CoinGecko. The Fear and Greed Index has fallen to 13, indicating panicked sentiment among market participants.

On Friday, January 21, the leading cryptocurrency at the moment slipped below $37,700, and on Saturday — to $34,000. All top-10 by market capitalization followed the leader.

From the November high of $69,000, the price has fallen by 50%. Net realized losses for investors last Friday exceeded $2.5 billion.

Coinbase’s head of institutional research, David Duong, whose report CoinDesk cites, says that traders may be pricing in concerns about the possibility of a sharp tightening of the Federal Reserve’s monetary policy in the coming months.

“One of the bullish drivers for cryptocurrencies over the past two years has been the excess of pandemic-era fiscal and monetary stimulus worldwide, and much of it is set to wind down,” Duong said.

Some community members mock the situation on social media. One Reddit user noted that the BTC chart formed a pattern resembling Pikachu’s ears.

Against the backdrop of the correction in the leading cryptocurrency, the government of El Salvador purchased 410 BTC for $15 million. The average purchase price was $36,585. With the latest investment, the state fund’s balance holds 1,651 BTC.

Later, the country’s president Nayib Bukele changed his Twitter avatar, overlaying a cap and a McDonald’s badge on his photo. His idea was supported by MicroStrategy’s Michael Saylor.

May apply for night shift at @TheRealTahinis to stack more sats. #NewProfilePic pic.twitter.com/ZrirLojvrq

— Michael Saylor⚡️ (@saylor) January 23, 2022

“I would take a night shift at Tahinis to stack more satoshis,” wrote Saylor.

As reported, on January 23, MicroStrategy fell to a yearly low amid a letter from the SEC and a decline in Bitcoin’s price.

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