Bitcoin price falls below $40,000

On Monday, January 10, the price of the first cryptocurrency fell below $40,000. The drop over the last 24 hours was 4%, according to CoinGecko.

At the time of writing, bitcoin was trading around $39,900. Its market capitalisation stands at $754.9 billion.

For the first ten days of 2022, BTC price fell by more than 15%, and the drop from its peak of $69,000 exceeds 40%.

The Ethereum price fell to $2,930. At the time of writing the asset is around $3,000.

Other top-10 cryptocurrencies by market capitalisation also moved into the red, with the exception of the stablecoin USDC.

Cumulative liquidations on the futures market over the last 24 hours exceeded $307 million.

The plunge came amid another internet outage in Kazakhstan after partial restoration of access.

⚠️ Update: #Kazakhstan is again in the midst of a near-total internet blackout following a partial restoration of service earlier today.

The information vacuum continues to limit human rights monitoring and coverage of incidents on the ground.

📰 Report: https://t.co/Op5GwzXKbh pic.twitter.com/UQI3sVox1D

— NetBlocks (@netblocks) January 10, 2022

On January 10, Alan Dordzhiev, head of the National Association of Blockchain and Data Center Industry in Kazakhstan, told ForkLog that virtually all local licensed mining data centres had begun resuming operations.

Earlier economist Alex Krüger predicted that BTC could fall below $40,000 in a high-inflation environment. Update of the local low on January 6 occurred amid news of the Fed readying to raise the federal funds rate earlier and faster than expected.

Krüger reminded of Jerome Powell’s January 11 testimony on his nomination for a second term as head of the Federal Reserve.

Given the circumstances, have to believe that tomorrow a minimally well behaved Powell will make stocks put on a nice relief rally. If he doesn’t, then you’ll all get another chance to relive this morning and buy the crypto dip again.

— Alex Krüger (@krugermacro) January 10, 2022

«Given the circumstances, one has to believe that tomorrow a minimally well behaved Powell will push stocks to a nice rally. If he doesn’t, you’ll have another chance to relive this morning and buy crypto again,” the analyst wrote.

In December, billionaire Louis Navellier warned that bitcoin could fall to $10,000. He said that on the chart of the first cryptocurrency, the signal of a double top is intensifying, which could occur as the Fed normalises monetary policy.

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