Bitcoin Nosedives Below $38k As Tech Stocks Take A Beating, Pandemic Gains Disappears

Bitcoin was down in the afternoon session on Wednesday, as bargain hunters and dip takers failed to maintain this morning’s momentum. The premier crypto continues to maintain price action similar to tech stocks.

Bitcoin sank below $38,000 as Wall Street opened, giving up half of the gains made on Feb. 1. Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it dipped below $38,000 as Wall Street opened, giving back half of the gains made on Feb. 1.

Bitcoin’s price has risen above $39,000 after a sustained recovery. There was no proper closing above $39,000, though. As a result, the price dropped again from the $39,200 level.

Bitcoin fell 4.35% to US$37,621 on February’s second trading day, extending the January sell-off.

Tech stocks also took a beating. Bloomberg data revealed how early pandemic gains were wiped out this year and last, with PayPal losing 52% and others, including Zoom and Peloton, losing 70% or more. PayPal led the way, after it failed its earnings expectations.

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Bitcoin has dropped almost 45% from its all-time high of $69,000 since last year, as increasing inflation and fears that Russia and Kazakhstan would follow China’s lead and restrict crypto mining have caused formerly uncontrollable speculators to hedge their bets.

Popular Twitter account TXMC Trades summarized on the day:

“Market structure for me is still clearly bearish under $39.6K. Would like to see daily closes over $40.2K before I felt a bigger rally possible. My base case is still a test of $29K-$30K (or lower) before any future price discovery. Macro FUD is driving all. HODL and wait.”

Despite the persistently low price performance, on-chain data remained positive. Willy Woo, a statistician, emphasized on Wednesday that all is well with Bitcoin under the hood, building on prior remarks. He noted:

“Price in relation to on-chain demand from both speculative and hodl category of investors are now both at peak oversold levels. The last time this happened was October 2020. The time before that was at the bottom of the COVID crash”

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