Another series of FUD further helped Bitcoin price to move below $34,000. This has put more pressure on altcoins. The altcoins are currently trading below multi-month lows. On 21st May, the market of cryptocurrency got heated by a series of doubts, uncertainty, and fear, which sparked a more muted sell-off regarding the journey of the price of Bitcoin.
It also hit a significant portion of the price of altcoins. In a total time of 3 weeks, for the 2nd time, China appeared to be the primary culprit with their regulators cracking down on the trading and mining of Bitcoin. The authorities present in the city of Hong Kong proposed that the cryptocurrency market should ban retail traders and regulators from trading cryptocurrencies. Data from TradingView and Cointelegraph Pro showed that the bulls of BTC were holding a support level of $40,000 before the announcements were made by China. Following the announcement, the bulls lost it quickly while regrouping at the support level of $36,000 before the downside in price.
Does the Price Drop In Bitcoin Hint Towards A Cold Winter?
On Thursday, while this turnaround in the cryptocurrency market hints towards a cold crypto winter, many analysts including the co-founder of Jarvis, Ben Lilly, have currently assessed and concluded that there is less possibility of cold crypto winter. This was before the drawdown of Friday. Still, there is a high chance that the price of the largest cryptocurrency in the world, Bitcoin will manage to climb higher while holding its ground. This speculation came up due to the heavy activity that is prevalent in the business of whale wallets. Heavy inflows of around $39,931 in whale wallets are now hinting towards a new support level possibly.
