Bitcoin had been enjoying a winning streak for over two weeks. But, following Meta’s (previously known as Facebook) poor Q4 earnings, the winning streak came to an end.
The more bad news was to follow – Meta’s guidance for the ongoing quarter is also low. This too contributed to BTC’s fall in price. The weak guidance saw Meta shares shed more than 18% in value. Expectedly, this caused a dip in BTC’s trading volumes across all major crypto exchanges.
BTC dropped in value by 4.5% and is trading at $37,031. The next biggest crypto asset, ETH, dropped in value by 3.8% and is trading at $2,690.
Effect of Meta’s Earnings Dip
This fall of BTC and ETH in crypto markets had an impact on altcoins too. The altcoins also experienced a dip. DeFi tokens LRC, CRV, and SOL saw huge losses in value.
ETH’s losses were greater than that of BTC. It was felt that this was possibly due to a hack of over 120,000 ETH on Wormhole. Wormhole is a cross-chain bridge. Attempts were on to contact the hacker through the bridge that connects Solana to other established networks. Wormhole has now been shut down as efforts to contact the hacker continue.
BTC had briefly breached the $38,000 mark, But it failed to sustain that level. BTC is currently trading at $37,000. Some buyers, for short-term gains, continue to trade BTC above its support level of $35,000. However, even this activity failed to keep the momentum going. The fall is expected to continue.
Before the current fall in the price of BTC, its RSI index was high – near the overbought level. The fall will only be reversed if buyers continue buying over the 40,000 level.