Blockchain

Bitcoin plummeted: how to profit in the red market

SPONSORED POST*

Bitcoin (BTC) begins its first full week of 2022 on familiar territory under $50,000. Since the end of December 2021, Bitcoin has seen a red market with multiple declines of varying magnitude. It even plummeted below $43,000 on Jan. 5 and plummeted nearly 10% in just 8 hours. Bitcoin is finally making some big moves and we can expect the next few days to be very volatile.

Bitcoin and crypto red market

Cryptocurrency market sentiment, which has shown extreme anxiety, has strengthened after a prolonged period of sluggish performance and the recent plunge. Crypto Fear and Greed Index has changed from 24 yesterday to 15 now (the lower the index, the more fear).

The Fear and Greed Index is in the extreme fear zone.

What comes with the downtrend moves and fears is a slew of bad news:

Stock markets and sharp Fed corrections

the US stock markets retreated at the closing bell following the minutes of the Federal Reserve’s FOMC meeting in December showed the regulator’s determination to shrink its balance sheet and raise interest rates in 2022. Liquidations hit $222 million in less than an hour.

“Bitcoin will be volatile over this period, an effect of both stock market volatility and sharp Fed price corrections,”

Karl Edwards, founder of wealth manager Capriole, in a series of tweets on Jan. 3.

Continuous crackdown on multinational regulatory policies

Crypto regulatory policies after crypto regulatory policies are posing greater challenges to bitcoin prices. As one of the world’s largest crypto mining countries Iran Shuts Down Crypto Mining Centers again to reduce liquid fuel consumption in power plants as temperatures drop. Meanwhile, Kosovo joins Kazakhstan, Iran and Iceland in imposing restrictions on bitcoin mining due to congested power grids. Besides that, Members of the UK Parliament are pushing for increased regulatory oversight of crypto assets This year, South Korea’s National Tax Service announced that from January 2022, citizens will have to pay taxes for payments in cryptocurrencies.

Bitcoin Network Hash Rate Drops 13.4%

On Wednesday, Kazakhstan, the second largest country in the world when it comes to bitcoin mining hash rate, experienced unprecedented political unrest. State-owned Kazakhtelecom shut down the country’s internet, causing network activity to drop to 2% of daily levels. The move dealt a serious blow to bitcoin mining activity in the country, which accounts for 18% of the global bitcoin network’s hash activity. According to data compiled by YCharts.com, the total hash rate of the Bitcoin network dropped 13.4% from about 205,000 petahash per second (PH/s) to 177,330 PH/s in the hours after the shutdown. It is undoubtedly having a major impact on global bitcoin mining.

More losses at BTC

Red Bitcoin Market
bitcoin losses

The daily chart of the BTC/USDT pair shows that the BTC price has been hovering around $45,000 for a long time. After you break this price, Bitcoin has continued to fall. The EMA (Exponential Moving Averages) cross had a death cross on Dec. 22, which was almost a prediction for the BTC price tumble during that period. All in all, BTC is down 37.5% from the all-time high of $68,000 to the current price of $42,500. Most analysts felt it had entered a bear run.

How to profit from the Bear Run?

If you want to profit from a bear market, you might need to know Levered 100 times Cryptocurrency futures trading. With 100x leverage in futures trading, you can either buy up (go long) or sell down (go short), meaning you can take profits whether the market is rising or falling. In addition, 100x leverage can increase your profits by 100x.

How does 100x leverage work?

Traders can use this tool to open a position with a required margin as low as 1%. For example, if we used 1 BTC to open a short contract on January 5 at a price of $46,800 and close it 8 hours later when Bitcoin was trading at $42,500, our profit would be ($46,800 – $42,500) * 100 BTC / $42,500 = 10.11 BTC, making the ROI more than 1000%.

Recommended trading platform with 100x leverage

Bexplus is a leading crypto derivatives trading platform Offering 100x leverage futures trading on various trading pairs: BTC, ETH, ADA, Doge, XRP, etc. Bexplus does not require KYC and is popular with over a million traders from around the world. In addition, it is sure to be accredited by MSB (Money Services Business).

Benefits of BexPlus:

  • 100% bonus for each deposit.
  • Bitcoin wallet with an annualized interest rate of up to 21%.
  • demo account with 10 BTC for traders to get acquainted with leverage trading.
  • No KYC requirement, registration with email verification within minutes.
  • Intuitive and fully functional app on Apple app store and google play.
  • 7/24 hours one to one service to solve your problems at any time.
  • Fast withdrawal with no time limit and no deposit fee.

Join Bexplus get one 100% deposit bonus!

*This item has been paid for. The Cryptonomist neither wrote the article nor tested the platform.

Bexplus


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