Bitcoin fell below $47,000, wiping out the October gains-has the bear market begun?


Bitcoin (Bitcoin) Suddenly fell below $47,000 on December 4, and has fallen by nearly 20% in the past 24 hours. This is the biggest one-day drop since May 15, when the price of Bitcoin fell to nearly $33,000.

The market price of BTC fell by 26.4% from the week’s support level of $57,206 to $42,268, and then rebounded to the $45,000 mark. According to ByBit’s data, the Bitcoin market has experienced a total liquidation of US$1.3B in the past hour, and liquidated US$735 million in BTC longs during this decline.

The chart shows the total liquidation volume of BTC. Source: ByB

As a result, Bitcoin’s bear market offset the two-month bull market since September 29, in which BTC soared by more than 63%, reaching a record high of $67,602 on November 8. However, many Bitcoin analysts, including TechDev, point out a trend similar to the annual price trend of Bitcoin.

Another reason for Bitcoin’s two consecutive months of low bearish lows can also be attributed to the mainstream resistance of US regulators. CEOs of famous crypto exchanges including FTX and Binance The United States holds a hearing on crypto assets.

related: Zimbabwe may be the next country to accept Bitcoin as legal tender

Despite concerns about volatility and non-compliance with traditional financial practices, Bitcoin continues to rise as a viable asset for jurisdictions with unstable economies.

Following in the footsteps of El Salvador, the government of Zimbabwe is considering using Bitcoin as the mainstream. As Cointelegraph ReportThe President and the retired Brigadier General Charles Wakevet, Permanent Secretary and Chief of Office of the E-Government Technology Department of the Cabinet, confirmed that discussions with companies are already in progress.

According to Wekwete, the authorities intend to enact regulations to protect consumers from financial threats, such as unregistered cross-border transfers, externalization of funds, and money laundering.