On Friday morning, the main cryptocurrency declined significantly by almost 5% and dropped to the $44,700 mark.
According to Binance, at the time of writing, the BTC has lost 4.82% and is trading at $44,732. According to CoinMarketCap, a website that tracks prices of crypto assets, digital gold fell by 5.33% in a day, falling to $44,590.
The top 10 leading altcoins by market capitalization followed bitcoin's trend and started to decline rapidly. Consequently, in the last 24 hours the Ethereum token fell by 3.1%, XRP lost 4.9% and Avalanche dropped by 0.6%. On the contrary, Solana rose by 3%.
According to CoinGecko, the world's largest aggregator of digital asset data, the total capitalization of the crypto market fell by 2.7% to $2.19 trillion over the past 24 hours.
At the same time, the Bitcoin Dominance Index fell by 0.1% to 39.7% on Thursday, while the BTC Fear and Greed Index dropped by 3 points to 52 points. On Friday, the latter index sagged another 2 points to 50 points.
Digital gold lost 1.5% in the first quarter of 2022. At the same time, March was a favorable period for the asset. Consequently, BTC grew by 10% and strengthened for the second month in a row.
A strong bullish trend of the cryptocurrency began on March 14 with BTC trading at nearly $37,000. Moreover, on March 28 the coin reached the level of $48,160, a high of 2022. However, the digital asset then encountered a technical obstacle and a period of correction started. Therefore, bitcoin pulled back below the key support level of $45,000 in some days.
If BTC continues to decline, it risks finding another potential support at $42,000 in the near future.
Notably, bitcoin lost more than 16% in January. However, it rose by 12% during February.
In November 2021, BTC renewed its all-time high, soaring above $69,000. The cryptocurrency has declined steadily and has fallen by more than 40% since that time.
By the end of 2021, bitcoin increased by 1.6 times to $46,200 from $28,900.
As the digital coin market is unstable, experts make the most unexpected predictions about its future. Many analysts agree that in the near future the leading central banks and many private players will start gradually to change reserves from dollars and euros and will turn to their diversification. It is likely that cryptocurrencies, particularly bitcoin will make up for some part of these updated reserves.
Notably, according to crypto experts' preliminary forecasts for bitcoin, April is traditionally considered the best period for digital gold. Therefore, over the past 11 years, the coin grew eight times and fell only three times this month.
