Bitcoin price falls below $34,000

On Monday, January 24, bitcoin’s price continued to fall and traded around $33,000. In the last 24 hours the asset declined 5.7%, over the week — 21.8%, according to CoinGecko.

The cryptocurrency is currently trading around $33 470. The total market capitalization stands at $1,6 trillion.

The past week proved the worst for bitcoin in eight months. On January 21, the quotes of the first cryptocurrency at one point dropped below $37 700, on Saturday — to $34,000. Relative to the November high of $69 000 the price fell by 50%. Net realized losses of investors last Friday exceeded $2.5 billion.

Following the leader, Ethereum also fell — over the past 24 hours the coin depreciated by 10.1%. At the time of writing, the price is around $2230.

All top-10 assets by market capitalization were in the red. Solana was the biggest casualty — down 17.9%. According to Coinglass, over the last 24 hours the volume of liquidations in the futures market exceeded $384 million.

The financial world is bracing for the upcoming January 26 Federal Reserve meeting. It is expected that Open Market Committee members will signal readiness at the March meeting together with the final unwind of the quantitative easing program to raise the policy rate by 25 bps.

Against this backdrop, stock indices have fallen sharply. The Stoxx 600, a benchmark for the 600 largest European companies, was down 2.1% at the moment. The S&P 500 futures were down 0.4%.

Against the backdrop of rising geopolitical risks, Eastern European stock indices have suffered. The dollar-denominated RTS index, tracking 43 Russian companies, tumbled 8.4%.

Earlier, Bloomberg Intelligence senior strategist Mike McGlone said that the stock market could fall 10%-20%. He said that similarly the digital-asset market would behave, but bitcoin could rise to $100 000 in the current year.

Earlier, Invesco forecasted a drop below $30 000 in 2022.

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