logo logo

The next-generation financial news, and trading signals for you to start driving your FOMO today!


FREE trading signals

Get free daily crypto signals to make profitable trades every day!

View fresh signals


Peter Davis

An writer at FOMOdrive

  • Dec 27, 2023
  • 3 min read

Bitcoin fell below $42,000 - what's happening?

Profit taking caused Bitcoin to drop.

By 2023, BTC has become one of the most lucrative investments.

It is possible that Bitcoin could reach a value of more than $250,000 by the year 2024.

There is a fear among experts that Bitcoin (BTC) could be subject to censorship.

On Tuesday, Bitcoin experienced a significant drop, with its value decreasing by approximately $2,000 from its peak. This could be attributed to investors cashing out their profits in anticipation of the potential approval of spot exchange-traded funds (ETFs) by the end of next week.

In 2023, Bitcoin has proven to be one of the most lucrative investments, with its value increasing by over 160% in the last year. This makes it more profitable than both precious metals and the IT sector.

Tim Draper, an American venture investor, has proposed that the Bitcoin rate could skyrocket to more than $250,000 in the coming year. He believes that the way to the widespread adoption of the first cryptocurrency is through the use of stablecoins.

Jan van Eck, the CEO of investment management company VanEck, declared that Bitcoin, the world's first cryptocurrency, has many advantages over other digital assets. He also stated that Bitcoin is the best store of value.

Brandon Zemp, CEO of the consulting company BlockHash, has forecasted that 2024 will be a prosperous year for Bitcoin, with the introduction of cryptocurrency ETFs and the implementation of regulations for crypto assets.

Bitfinex predicts that institutional investors will start to take more notice of the digital asset market in 2024, as a result of the potential approval of a Bitcoin ETF, lower US interest rates, and greater regulatory clarity.

According to CoinGecko, 3.8% of the total Bitcoin emission is held in various exchange-traded funds, amounting to 793,034 BTC. The Grayscale trust holds the majority of this, with 622,657 BTC.

Bitcoin mining pools have been reported to deny transactions related to addresses on the OFAC sanctions list. In anticipation of more stringent regulations, Bitcoin mining companies are taking steps to prepare. According to members of the cryptocurrency community, there has been a rise in the number of transactions being blocked due to sanctions, and they caution that Bitcoin miners may face even more pressure from authorities in the future.

CoinDesk analyst Omkar Godbole has observed that crypto futures traders have moved away from Bitcoin and towards altcoins. The percentage of BTC-based contracts in the total open interest in crypto futures has dropped to 38% ($30.45 billion), the lowest it has been in the past two years.

The WFE, which is responsible for traditional asset trading, has stated that crypto asset trading platforms must abide by the same stringent regulations as existing regulated trading venues.

Delphi Digital reported that the market capitalization of 183 gaming tokens varied between $4 billion and $7 billion in 2023, a decrease of 86% from its peak.

Venture capital investments in cryptocurrency projects and startups decreased by 68% in 2023, according to The Block's report. This amounted to $10.7 billion, a significant drop from the previous year.

Share this article