Bitcoin fell for a seventh-straight day to Saturday Jan 8, 2022 , the longest losing streak since 2018, slipping toward the key psychological threshold of $40,000 only to recover slightly the past 24h. 

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Bitcoin’s stretch of losses is now the longest since the downdraft from July 30 through Aug. 4 in 2018.

The price hasn’t fallen below $40,000 since September 2021, and it’s well off the all-time high near $69,000 reached in November.

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Crypto market analysts had warned in recent days of a steeper sell-off, though there was some support lately the brought the BTC price over $41k. Although recente (13 years old) BTC’s January tends to be a seasonally weak month. 2022 especially being cruel with an 11% drop .

 

There are various narratives why the market was roiled last week. On could be the signalling of the U.S. central bank whether to take more aggressive steps to tackle an inflation rate at its highest in 4 decades. Another could be selling cryptos to cover margin calls on leveraged long equity positions. Or simply profit-taking…who knows…...

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Many investors say bitcoin has benefited in recent years from the Fed’s ultra-loose, emergency monetary policy since the coronavirus hit the economy – including printing more than $4 trillion to bolster ailing traditional markets.So a reversal of such policy  is seen as a fresh headwind for bitcoin.

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There’s also a narrative in the market that bitcoin trades like a risky asset, similar to tech stocks. And the Fed’s hawkish turn could curb appetite for high-risk , high-return assets. Macroeconomic uncertainty is not helping either……..

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The question now is when and where the bitcoin price will find a floor.