The flagship coin could head straight into its worst week of losses in history as investors show fear of low liquidity due to the hike in interest rates.
Currently, bitcoin is arguably in the worst state, falling 7.4% last week. A further capitulation will see the largest cryptocurrency head into six consecutive weeks of losses, the worst run on record.
BTC has witnessed a string of losses in 2022, but the last month has seen the flagship coin fall sharply. The rapid fall coupled with the hike in interest has gotten traders worried and predicted a further decline in price in the coming week.
BTC Running Into Sixth Week of Losses
BTC is currently at its lowest level in 2022, exchanging hands at $36k. The coin depreciated by 33%, about $11,000 less than its 2022 high of $47.9k.
This news could deliver a bearish signal to investors and affect positioning that could kickstart a recovery. The confirmation could prepare BTC for further losses in the new trading week.
Some cryptocurrency analysts anticipate the flagship coin to bottom out at $28k. Prominent investor Peter Brandt opined that the virtual asset could bottom out at $32k, the lowest in ten months. Either way, holders will be in massive losses if this should happen.
Why the Virtual Currency Market is Bearish
BTC might have shed some value, but it isn’t the only one in a loss. The general cryptocurrency market has been in the red, shedding almost $400B from its total market cap in the last four weeks.
Many altcoins, such as ether, SOL, BNB, and LUNA, have recorded massive losses in the last month. However, it’s LUNA and AVAX that are the worst hit.
A significant trigger for the bearishness is the interest hike. In January, the Federal Reserve revealed it would increase the rate three times from March. The market seemed perturbed by the announcement, with the news consequently affecting its performance.
The recent interest hike was a major detriment to the crypto market, as well as the equities market. The coin market is hugely tied to stocks. So, a blow to the latter will ultimately affect the former. Likewise, a rally in the equities market will spark bullishness in the crypto space.
However, the correlation could end with rate hikes expected globally. The Russian invasion of Ukraine is another major factor responsible for the coin’s market performance. The war sent shock waves across the globe, affecting various world economies.
Investors are optimistic about a positive week ahead, but the charts suggest they should brace up for a bearish market.