Bitcoin Plummets Below $40K for First Time in 48 Days, Triggering Market-Wide Crypto Slide

On Monday, Jan. 22, 2024, the value of bitcoin fell below the $40K mark for the first time in 48 days, as per market analysis. In the last 24 hours, bitcoin witnessed a 4% decline, with a 14.2% decrease observed over the preceding two weeks.

Bears Take the Reigns—Bitcoin Falls Under $40K Amid Market Turbulence

Since early December 2023, specifically since Dec. 5, 2023, bitcoin’s price has remained above the $40K threshold. The leading crypto asset in terms of market value reached a peak of $49,000 on Jan. 10, 2024. However, this high was short-lived. Subsequently, the price descended to the $45K bracket. Over the recent days, it has struggled to maintain its stance in the $40K territory, eventually dipping below this threshold at 2:15 p.m. Eastern Time (ET) on the said Monday afternoon.

Bitcoin chart by TradingView

Currently, the value of bitcoin has dropped to approximately $39,400, with a trade volume of about $25.81 billion at 2:15 p.m., a significant increase from the $16.58 billion recorded at 8:00 a.m. (ET). Short-term indicators reveal that bitcoin (BTC) is undergoing a downward trend, marked by heightened volatility and a notable decline in its worth. The surge in trading volume during this downturn hints at a possible panic-induced selling spree, especially as the price falls below the $40,000 level, a key psychological support point.

The recent dip in BTC’s price has also filled a CME gap that existed around the $39,600 mark. In the hour following the plunge, bitcoin long positions amounting to $25.57 million have been liquidated, with $65.78 million in BTC longs eliminated over the entire day.

The $39,000 #bitcoin CME Gap has closed

— TMG ₿ (@MartiniGuyYT) January 22, 2024

This downturn in bitcoin’s value has triggered a ripple effect across numerous cryptocurrencies, contributing to the overall $1.59 trillion crypto market economy’s 3.02% decline on Monday. Ethereum has dropped by 6%, BNB by 4.5%, SOL by 9.4%, and XRP has seen a 4.7% decrease in the same timeframe.

What do you think about bitcoin plunging below the $40K range on Monday? Let us know what you think about this subject in the comments section below.

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