Bitcoin price news – live: Mystery Coinbase trader transfers $40m of bitcoin amid crypto slump

Bitcoin fell in price by nearly 40 per cent between November 2021 and January 2022 (Getty Images)

The price of bitcoin has managed to stabilise on Monday, having experienced the longest continuous decline since 2018 at the start of the year.

The cryptocurrency is holding above the key psychological barrier of $40,000, though market analysts have warned that a severe sell-off could take place take place if it falls below that level.

Funds are already being moved onto exchanges by some investors, with one anonymous wallet transferring more than $40 million in BTC onto Coinbase.

Other leading cryptocurrencies have experienced a similar downturn in fortunes to bitcoin, with Ethereum (ETH), Binance Coin (BNB) and Solana (SOL) all falling by around 20 per cent over the last seven days.

The only top 20 cryptocurrency by market cap to see any positive movement since the start of 2022 has been Chainlink (LINK), which has risen by more than 15 per cent in price.

You can follow all the latest cryptocurrency market news, analysis and expert price predictions in the live blog below.

Bitcoin price bounces as experts predict ‘relief rally’

20:06 , Anthony Cuthbertson

The price of bitcoin has managed to hold above $41,000, after its brief venture into the sub $40,000 territory earlier today. Where it goes from here will depend on a number of factors, but its short-term direction could ultimately determine the overall market sentiment and therefore future trajectory over the coming weeks.

We’ve heard from a couple of crypto experts, who are tentatively predicting that bitcoin could recover some of its losses, at least in the short term.

Here’s what Marcus Sotiriou, analyst at the UK based digital asset broker GlobalBlock, and Mike Novogratz, CEO of Galaxy Digital, had to say:

Despite the crypto market being in oversold territory, it is widely impacted by global markets and economic conditions. Plans declared by the Federal Reserve for rate hikes in 2022, as well as reducing the rate of monthly bond purchases, have contributed to bitcoin’s sell off so far.

On Wednesday, US inflation data will be released. The market expects the consumer price index (CPI) to rise 7.1 per cent for the year through December and 0.4 per cent over the month. If the figure released is larger than expected we can expect further sell pressure for bitcoin, as the markets are forward-looking and high inflation leads to more action from the Federal Reserve to control it. I think due to the selling we have seen in recent weeks, the downside is limited in the short term, even with higher-than-expected inflation data on Wednesday.

Marcus Sotiriou, GlobalBlock

I know big institutions who are going through their process to put positions on. They’re going to see those as attractive levels to buy.

Mike Novogratz, Galaxy Digital

‘When in doubt, zoom out’

16:27 , Anthony Cuthbertson

Bitcoin has managed to return above $41,000, potentially signalling an end to the seven-day losing streak it has been on if it is able to hang on.

Crypto industry insiders and commentators have been offering their perspectives on the latest market downturn on social media.

This one from Dan Held, who works at the crypto exchange Kraken, is often repeated during times of price turmoil: “When in doubt, zoom out.”

Bitcoin price flash crash

15:26 , Anthony Cuthbertson

The price of bitcoin just crashed below $40,00, before immediately bouncing back to its previous levels.

The recovery from the flash crash suggests support at that level, just as there was in September 2021 when it rebounded from around $39,550.

 (CoinMarketCap)

(CoinMarketCap)

Bitcoin price sees longest losing streak since 2018

14:01 , Anthony Cuthbertson

Bitcoin has fallen in price for seven consecutive days, marking its longest losing streak since August 2018.

It’s now down nearly 40 per cent since its November peak, with analysts warning that a further sell-off could be triggered if it falls below the crucial $40,000 level. The last time it was this low was in September 2021, when it bottomed out at $40,000 and bounce back to hit new record highs within two months.

You can read the full story here.

 (CoinMarketCap)

(CoinMarketCap)

Hello and welcome…

13:49 , Anthony Cuthbertson

to The Independent’s live coverage of the crypto market. We’ll be bringing you all the latest news and market analysis throughout the day, as well as forecasts from cryptocurrency analysts and experts.


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