Bitcoin: down at $40,000; more losses ahead?

Bitcoin: down at $40,000; more losses ahead?


Once above $60,000, Bitcoin is now below $40,000. That's not only a big loss but also a key technical level: 200-MA is providing support here. Further below, it'll be already $30,000 and pretty much nothing holding the primary cryptocurrency from going down. Is it possible? Yes.


First, while corporations are increasingly interested in decentralized finances and digital tokens, state financial institutions are increasingly unamused with the out-of-control perspective it suggests to the global economy. Hence, governments are strategically interested to crack down on the digital economy and put as much control on it as possible. Therefore, it is essentially a clash of interest: states want more control, businesses and individuals want more freedom. Now, as the Chinese officials reiterated that no digital asset can or should be used as a means of payment like fiat money, crypto investors got a part of their hope of digital freedom slashed. Bitcoin reacts accordingly. 

Second, the crypto market is highly volatile - to an extent that it makes all-time highs just blindly believing announcements of "big people" such as Elon Musks. As such, it's a trade-rumor scheme in its most perfect form: Elon Musk tweets - the market flies. Now, we're observing the flip side of the coin. Elon Musk said - Bitcoin goes down. To be precise, Elon Musk doesn't bear responsibility for the over-reacting of the market: the "Imperator of Mars" is free to speak as he pleases. It's the market participant who like stretching what they get from Musk's words and making another reason for Bitcoin to fly - or fall. 

At the end of the day, remember 2017: with all the interest from the institutional investors, we may be heading into a big multiyear correction where the current $40,000 will turn out to be another once-achieved and quickly-abandoned high.

                            Remember you can trade Bitcoin in FBS Trader! 

Your action

Wait and observe. As in most cases, it's the best reaction to what you cannot really explain nor control. When the plunge stops, give it another day or two - or even a week or so - to make sure there is no further downside looming and pick it up on the upside reversal if you want to catch the next upswing. 

With Bitcoin, it may be $60,000 - or $20,000 - just in a few weeks... or days. Both options are possible. 


                                                                                  LOG IN


Will the CPI Crash the USD?
Will the CPI Crash the USD?

 The most impactful releases of this week will fill the market with volatility and sharp movements. Be ready to take action!

How to trade the JPY?
How to trade the JPY?

Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:

Latest news

No More US Debts in Sight
No More US Debts in Sight

The first day of June should’ve brought us the US default. Unsurprisingly, the US House passes the debt ceiling bill at the latest possible moment.

Gold Rises as Central Banks Buy More
Gold Rises as Central Banks Buy More

About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.

US Evades Default This Time
US Evades Default This Time

Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera