Bitcoin Loses 10%, Drops To Below $38,000 Before Bouncing Back - Binance

Bitcoin Loses 10%, Drops to Below $38,000 Before Bouncing Back - Binance

Bitcoin lost 10% of its value on Friday, and its price fell down to below $38,000, but started the upward movement later in the day, data on trading website Binance shows

MOSCOW (UrduPoint News / Sputnik - 21st January, 2022) Bitcoin lost 10% of its value on Friday, and its price fell down to below $38,000, but started the upward movement later in the day, data on trading website Binance shows.

Earlier in the day, Bitcoin dropped to $37,710, having lost 10% of its value. After that, it started to steadily rise and exceeded the level of $38,000, as of 14:40 GMT, according to Binance.

Analysts see the connection between the drastic fall of Bitcoin's value and significant losses that main US stock markets saw on Thursday.

Since September 2020, the cryptocurrency has repeated the dynamics shown by stock markets, however, the value of Bitcoin and other digital currencies sometimes fluctuates for other reasons, digital assets data provider Kaiko told The Wall Street Journal.

"Cryptocurrencies are no longer an isolated risk asset and are responding to changes in global policy," the research director at Kaiko, Clara Medalie, told the newspaper.

The decline in Bitcoin's price coincided with a 20% fall in streaming giant Netflix' shares in offhours trading in the US after it became known that the number of the company's new subscribers went down. Some experts argue that selloffs of shares of popular technology stocks might cause investors to close their positions to mitigate losses, according to the journal.