Bitcoin dips below $34,000 after tough weekend, $30k in sight?

© Reuters – The situation continues to deteriorate on the , the cryptocurrency posting losses on Monday morning for the 5th day in a row, with a recent low at $33,350 overnight, down more than 16% since the peak on last Thursday’s $40,000, a threshold that had attracted sellers.

Now, the 2022 yearly low of January 24 at $32,980 is the next potential support visible on the daily chart, before the major psychological threshold of $30,000.

Additionally, BTC/USD is now showing a drop of more than 50% since its high of last November.

Remember that the fall of Bitcoin, and cryptocurrencies in general, is linked to a general climate of risk aversion. Remember that this decline in bitcoin comes after the index lost more than 1,000 points on Thursday and the price plunged 5%.

The losses marked the worst single-day falls since 2020. The Dow Jones and Nasdaq fell again on Friday, albeit to a lesser extent. At issue was the NFP report released on Friday which showed job growth remained robust last month, at a level that should continue to worry the Federal Reserve about an overly tight labor market.

As more employers compete for workers, wages could begin to rise, adding to inflationary pressures and forcing the Fed to tighten monetary conditions more quickly, a positive for the Dollar and a negative for BTC.

It should be noted that this risk aversion remains relevant on Monday morning, with US futures already registering in the red.

Recall that on Wednesday evening, the Fed had announced a rate increase of 0.50%, but had ruled out proceeding in the future with a rate hike of 0.75%, contrary to expectations, which had allowed BTC / USD to reach 40,000 $ before the sellers take over on Friday.

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