Bitcoin price dropped by $3,000, crypto market was in the red

On the night of 5/5 (Vietnam time), the price of Bitcoin – the number one cryptocurrency in the world suddenly dropped sharply. The “day candle” opened at $39,700, but by the end of the day, the price per Bitcoin plummeted to only $36,500.

At the same time, in the market of buying and selling short (futures), the price of Bitcoin even dropped to only $35,500. This move caused a series of traders to have their short positions liquidated.

Thus, in less than 24 hours, the Bitcoin price has lost up to 8% of its value. This is Bitcoin’s lowest price since February 24, 2022, when Bitcoin’s price dropped to $34,000.

The sharp decline in price of Bitcoin has had a significant impact on the cryptocurrency market. A series of strong cryptocurrencies like Ethereum (ETH), Binance Coin (BNB), Polkadot (DOT)… all lost 10-15% of their value.

At the present time, at dawn on May 6 (Vietnam time), Bitcoin price has recovered to $ 37,000. Even so, the crypto market is still in the red.

The main reason affecting the Bitcoin price is likely related to the fact that the US Federal Reserve (FED) announced an increase in lending interest rates by 0.5%. This decision takes effect from June 2022.

This is the rate increase that experts have predicted before. Therefore, the first reaction of the entire crypto market is a slight increase in prices. However, just a few hours later, the crypto market turned around and turned bearish.

The same thing happened on the stock market when on May 5, the Dow Jones index lost more than 1,000 points. Other key indexes such as the S&P 500 and Nasdaq fell 3.5% and 4.7%, respectively.

Not out of the general downtrend of the market, the prices of technology stocks all dropped sharply today. Meta Platform (Facebook’s parent company) stock lost 5.8% of its value. The situation was not better for Amazon and Microsoft when the share prices of these two “big guys” also fell by 7.1% and 4.7%, respectively.

Trong Dat