After reaching an all-time high of $58,000, the largest digital currency in the world Bitcoin (BTC) took a massive hit on the 22nd of February, dipping below $50,000, due to the fierce criticism received from U.S. treasury secretary Janet Yellen fueling up the already blazing fire.
The Sudden Hit
The intense hit dipped the leading digital asset to reach lows of up to 47000$ according to the data provided by Trading View. The recorded dip showed that Bitcoin had fallen almost $7000 in under an hour, leading to many bells ringing around the world and questions being raised about the stability of the asset. Shortly after, Bitcoin recovered, getting its trading value back to 53,000$.
Analyst Scott Melker stated that it must by far be the largest hourly move in history. According to analyst Michael van de Poppe, this time of the year is not serving well for the crypto market resulting in fairly average performance. He pointed out that the range from $50,000 to $52,000 is very crucial for the stability of the asset.
Bitcoin Tagged As “Inefficient”
Reports from twitter highlighted that Janet Yellen referred Bitcoin as “inefficient” and claimed multiple times that it is being used in criminal activities. Meanwhile, financial innovator and Bitcoin supporter, Sunayna Tutejahe was hired as the new chief innovation officer (CIO) of the Federal Reserve.
Billionaire Elon Musk tweeted on Saturday that the prices of Bitcoin and Ethereum “seem high” than usual. Ross Middleton, the co-founder of DeversiFi stated to the Reuters that the sell-off across the board this week is a result of some of last week’s hype easing up, as well as the unwinding of over-leveraged long positions.
For experienced users, this hit was just a usual business. Armin van Bitcoin stated in a tweet that when you have worked on crypto for a while, you become immune to sudden price drops in the market.
The top-ranked digital currency, on the other hand, is once again now trying to turn its movement towards the $60k figure. However, the current sentiment for the coin is highly bearish as the price value of BTC is down by more than 8 percent during the last 24 hours, at the time of writing. BTC price is holding at around $51,870.