Originally published on: February 03, 2022
Bitcoin made a comeback above $37,000 on February 3rd after facing a setback due to a tech stock rout impacting the US markets. The cryptocurrency briefly touched $36,650 on Bitstamp before stabilizing at a lower level.
The decline in Bitcoin’s price followed significant losses in US equities, with companies like PayPal witnessing a substantial drop in their stock value following disappointing performance reports. Adding to the turmoil, Meta, previously known as Facebook, experienced a 20% decline in its share price due to a decrease in user base.
Bitcoin enthusiasts found humor in the situation, but the challenging price action made it less likely for the cryptocurrency to break through the key resistance/support level. Analysts like Michaël van de Poppe warned that if Bitcoin falls below $37,000, it could quickly decline towards $34,000-$35,000.
Van de Poppe also highlighted the importance of the US dollar’s strength in determining the future movements of the crypto market, as the US dollar index (DXY) had recently suffered significant losses.
In contrast to Bitcoin, altcoins faced further losses, with Solana leading the top 10 cryptocurrencies with a nearly 10% drop. Other cryptocurrencies like Polkadot, Terra, and Ethereum also experienced declines on the day.
The downward pressure on Solana was attributed to various platform issues, with the SOL/USD pair trading below $100 at the time of reporting. Despite the challenges faced by altcoins, markets continue to show resilience and opportunities for savvy investors.
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