Bitcoin Price Plummets by 7.44% in 24 Hours

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Bitcoin, the leading cryptocurrency by market capitalization, has experienced a sharp drop in its price in the last 24 hours, falling by 7.44% to trade at $42,354.02 per USDT as of writing. This is the lowest level since January 11, 2024, when the price briefly dipped below $40,000.

The price decline comes amid a series of negative news and events that have shaken the confidence of investors and traders in the crypto market. Some of the factors that have contributed to the bearish sentiment include:

• The announcement by the US Securities and Exchange Commission (SEC) that it has initiated a civil enforcement action against decentralized exchange platform Uniswap, alleging that it violated securities laws by offering and selling unregistered digital asset securities.
• The report by Bloomberg that China's central bank has ordered all domestic banks and payment platforms to stop facilitating transactions related to cryptocurrencies, as part of its ongoing crackdown on the industry.
• The revelation by Twitter that it has detected a coordinated phishing campaign targeting its users, especially those who are involved in the crypto space. The attackers have been sending fake emails and direct messages, pretending to be from Twitter support, and asking for personal information and passwords.
• The technical analysis by several experts and indicators suggest that Bitcoin is facing strong resistance at the $45,000 level, and that a further downside correction is likely in the short term.

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Despite the price drop, some analysts and investors remain optimistic about the long-term prospects of Bitcoin, citing its fundamentals and adoption. For instance, according to data from CoinMarketCap, the 24-hour trading volume of Bitcoin has increased by 18.67% to $73,885.18 BTC, indicating a high level of liquidity and interest in the market. Moreover, the current interest rate for lending and borrowing Bitcoin on the 10x platform is 0.00332863% per USDT, while the next interest rate is 0.00287921%, suggesting a stable and profitable opportunity for lenders and borrowers.

Additionally, some positive news and events have also emerged in the crypto space, such as:

• The announcement by MicroStrategy, a leading business intelligence firm and one of the largest corporate holders of Bitcoin, that it has purchased an additional 1,434 BTC for $82.4 million, bringing its total holdings to 121,044 BTC, worth about $5.1 billion at current prices.
• The launch of the first Bitcoin exchange-traded fund (ETF) in Latin America by QR Capital, a Brazilian asset management firm, on the Sao Paulo Stock Exchange. The ETF, which tracks the performance of the CME CF Bitcoin Reference Rate, will allow investors to gain exposure to Bitcoin without having to buy and store it directly.
• The endorsement of Bitcoin by El Salvador's President Nayib Bukele, who tweeted that he has instructed the state-owned geothermal power company to offer facilities for Bitcoin mining using renewable energy from the country's volcanoes.

Bitcoin, which was created in 2009 as a peer-to-peer electronic cash system that operates without intermediaries or central authorities, is powered by a network of computers that validate transactions and secure the system using a consensus mechanism called proof-of-work (POW). Bitcoin has a limited supply of 21 million coins, of which about 18.8 million have been mined so far.