Bitcoin (BTC) on 2-Day Losing Streak as Broader Tech Sector Takes Plunge

It is not uncommon to find mixed perceptions about the prices of Bitcoin amongst market investors and leaders.

The digital currency ecosystem is not seeing the best of days today as the combined market cap value just plunged by 2.82% to $1.03 trillion. The bearish run has put a dent in the price of Bitcoin (BTC) which was on an ambitious growth streak to close January at a price that may stand as its best lift in 3 months.

The premier cryptocurrency is down by 0.95% over the past 24 hours and is changing hands at $22,683.04. The loss in Bitcoin (BTC) has trickled down to all other altcoins with Ethereum (ETH) has shed off 4.25% to $1,551.56, Avalanche (AVAX) down by 4.55% to $17.86 and Cardano (ADA), XRP, Binance Coin (BNB), and Solana (SOL) have all lost significant gains they have accrued over the past trailing 7 day period.

According to a Bloomberg report, the ongoing rout in crypto notably has its undertone with the general market and the encompassing fall can be traced to Microsoft Corporation (NASDAQ: MSFT). The American multinational tech giant posted a poor revenue projection that dented hopes for investors who believe the worst days are out for technology stocks.

Bitcoin (BTC) benefitted from the underlying positive sentiment that engulfed the financial ecosystem on account that the Federal Reserve and Central Banks around the world will taper down the fight against inflation through stringent interest rate hikes this year. Drawing on its deep correlation with tech stocks, the crypto market joined the rally that was printed across the board.

While many believe the Fed will continue to lower interest rates, experts are warning, however, hinted that stakeholders should taper down their expectations at its next policy meeting scheduled to hold next week.

Bitcoin (BTC) Price amid Traders Shorting

The drag down in the price of Bitcoin is highly unusual considering how the digital currency started out for the year. Some analysts who spoke to Bloomberg believe Bitcoin might have hit a cliff as investors have now returned to their less optimistic assumptions.

“With risk assets, it’s almost been like trying to hold a ball under water so far this year,” said Tony Sycamore, a market analyst at IG Australia Pty, “The market is now having second thoughts about how much further to push them.”

Another expert, Hayden Hughes, chief executive officer of social-trading platform Alpha Impact believes the short covering that helped push the price of the premier coin for the better part of this year seems to be fading away.

“Prices began to reverse themselves as hedge funds re-entered short positions after taking the weekend off,” he said.

It is not uncommon to find mixed perceptions about the prices of Bitcoin amongst market investors and leaders. While there have been some proponents who see this year as a positive one for Bitcoin, some camp sees the latest growth run as an avenue to sell off the coin.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.