On Tuesday, Bitcoin sharply declined by 5.2% and closed the trading session at $38,100, reaching the lows of mid-March. The main downward factor for Bitcoin was a sharp drop in the leading indicators of the US stock market.
At the time of writing, the flagship digital asset is hovering near $38,900.
At the same time, BTC showed strong growth and gained 1.7% hitting $40,200 on Monday. The main reason for the growth of the asset was the active increase of key US stock market indices.
Earlier, the experts of the investment company Arcane Research have already stated that the correlation between BTC and technology securities has reached the highest level since July 2020.
On Tuesday, Bitcoin had already resumed its decline after rebounding the day before.
Commenting on the loud fall of the main virtual asset, well-known crypto analyst Michael van de Poppe stressed that bitcoin was at a "decisive level". If the coin continues to decline, the next important psychological level for it will be $36,000.
According to CoinShares, institutional investors continue to withdraw capital from cryptocurrency funds. Thus, in the past week, the net outflow of funds reached the level of $7.2 million. During the two previous weeks, institutional investors withdrew more than $231 million.
According to Kaiko, a popular cryptocurrency market data provider, trading volume on digital asset exchanges has plummeted to the lows of the summer of 2021.The day before, representatives of the Bitcoin Mining Council reported that the efficiency of BTC mining increased by 63% in January-March 2022 due to modern methods of mining.
In early April, Bitcoin was below market forecasts against the backdrop of negative events in global markets, as well as the conflict between Russia and Ukraine. Thus, over the past three weeks of this month, the exchange rate has already fallen by more than 10%.
At the end of the first quarter of 2022, Bitcoin lost 1.5%. At the same time, March was quite a favorable period for the asset, as a result of which it reported a growth of 10%, having strengthened for the second month in a row.
Bitcoin lost more than 16% in January and rose 12% during February.
In November 2021, the BTC reached a new all-time high, soaring above $69,000. Since then, cryptocurrency has maintained a steady decline.
In 2021, the value of Bitcoin increased by 1.6 times - to $46,200 from $28,900.
