Bitcoin dumps to hit six month lows near $38K

Bitcoin (BTC) has dumped 7.5% in the past 12 hours, plunging to 6-month lows from $43,328 at 4pm UTC yesterday to $38,258 by 4am UTC today.

At the time of writing Bitcoin was trading at $38,761 according to Cointelegraph.

Today’s price crash has so far wiped about $50 billion from the overall crypto market. The total crypto market cap has been on a slow decline since early November 2021 when it reached a peak of $3 billion.

Without a single bombshell piece of news that many could blame the dump on, investors are wondering what caused the price action. Some pointed to macro indicators, with tech stocks on Nasdaq entering into “correction territory” and several interest rate hikes are expected to come in 2022.

But Bitcoin moves in mysterious ways. It could just as easily be the news that Bitcoin bull Raoul Pal has apparently sold all his Bitcoin and only has one left…

The Rekt Capital Twitter account noted that the current pattern playing out “shares a few similarities with the price behavior of late September 2021.” At that time, Bitcoin tumbled several times from about $52,000 down to about $41,300 from Sept. to Oct. It proceeded to rise up to $69,000 by early November.

The InvesetAnswers account with over 85,000 followers suggested that bears “need Bitcoin under $41,000 to pocket $132 million in gains.”

BTC is not the only crypto to plunge today Ether (ETH), Binance Coin (BNB), Solana (SOL), Cardano (ADA), and Ripple (XRP) have all experienced a severe corrections between -6.3% to -10% in the past 12 hours.

Among all the top-ten coins by market capitalization, ADA experienced the biggest overall losses as it dropped 10% to $1.21. Today’s buggy launch of SundaeSwap did not appear to help matters.

Forbes contributor Billy Bambrough suggested in an article today that investors have been rattled by recent announcements from the Federal Reserve Bank that it would shrink its balance sheet and raise interest rates.