Bitcoin falls below $ 47,000, wipes out October earnings – bear market begins?

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Bitcoin (BTC) suddenly fell below $ 47,000 on December 4th and has lost nearly 20% in the past 24 hours. This makes this the largest one-day drop since May 15, when Bitcoin price temporarily fell to nearly $ 33,000.

The market price of BTC fell 26.4% from the week-long support of $ 57,206 to $ 42,268 before bouncing back to the $ 45,000 level. According to ByBit data, the Bitcoin market has seen a total of $ 1.3 billion liquidations in the past hour, with $ 735 million in BTC longs liquidating on that decline.

Chart showing total liquidations for BTC. Source: ByB

As a result, Bitcoin’s bear market is canceling out the two-month bull market since September 29th, when BTC rose over 63% to hit an all-time high of $ 67,602 by November 8th. Numerous Bitcoin analysts, including TechDev, point to a similar trend in Bitcoin’s price action for each year.

Another reason for Bitcoin’s two-month low bearish trend can also be attributed to mainstream resistance from U.S. regulators who invited CEOs of well-known crypto exchanges like FTX and Binance US to a hearing on crypto assets.

Related: Zimbabwe could be the next country to adopt Bitcoin as legal tender

Despite concerns about volatility and non-compliance with traditional financial practices, Bitcoin continues to grow as a viable asset for jurisdictions with unstable economies.

Following in the footsteps of El Salvador, the government of Zimbabwe is considering mainstream use of Bitcoin. As reported by Cointelegraph, retired Brigadier General Charles Wekwete, permanent secretary and head of the e-government technology division of the President and the Cabinet, confirmed that discussions with companies are ongoing.

According to Wekwete, the authorities want to develop regulations to protect consumers from financial threats such as unregistered cross-border transfers, externalization of money and money laundering.