Affected By World Stock Prices, Bitcoin Prices Drop Again, Beware Prices Are Still Wild!

Bitcoin price dropped again on Saturday, January 22. (photo: doc. unsplash)

JAKARTA – Bitcoin prices fell again on Saturday, January 22. The drop is around 4% on the day, which brings the price per coin to around $35,000.

Bitcoin, the world's largest and most popular cryptocurrency, has now seen a sharp decline by almost half from its ever-high day of $69,000 in November. Last Saturday the price of Bitcoin was in the range of 35,049 US dollars, after falling to a low of 34,000 and following a sharp decline last Friday.

The cryptocurrency has seen wild price swings and has taken a hit as risk appetite has plunged amid inflation concerns and anticipation of a more aggressive pace of rate hikes from the US Federal Reserve.

Another risky asset that has also fallen in line with the fall in world stock prices last Friday. The S&P 500 and Nasdaq recorded their biggest weekly percentage declines since the start of the pandemic in March 2020.

In a research note Friday, Edward Moya, senior market analyst for America at OANDA, said bitcoin fell as "crypto traders reduced risk portfolios after the bloodbath in stocks" and ahead of next week's Federal Reserve policy meeting.

“Bitcoin remains in the danger zone and if 37,000 breaks, there is not much support to reach the 30,000 level,” Moya wrote on Friday.

Ether, a coin linked to the ethereum blockchain network, also fell 6.7% to $2,396 last Saturday.

Bitcoin was down 9.28% at 36,955.03 at 22:02 GMT last Friday, and lost $3,781.02 from its previous close. This indicates the high volatility of cryptocurrencies and is very vulnerable to bad sentiment in world stock trading.