This year began with a market crash that saw most cryptocurrencies such as Bitcoin and Ethereum plummet.

Bitcoin has, however, been trying to correct the downtrend only for the bull correction to be cut short below $45K. Today, BTC dropped by more than 4% sending Bitcoin below $44K.

At the time of writing Bitcoin was trading at $43,609.63.

Why Bitcoin’s price is so low

Bitcoin price has been up and down after it dropped below $40k in January following the announcement by the FED that it was going to increase the interest rates gradually in the coming months. This followed reports that the U.S annual inflation rate has hit a 40 year high of 7% and that the interest rate will be increased for the first time in more than three years.

Currently, Bitcoin’s support level is at $42,578 and will have to reclaim $44,208 before retesting the resistance level at $45,161. If it happens to go below the support level, then it can drop to as low as $41,625, which will be a big blow to the world’s leading digital asset.

Crypto Market is currently in decline

While Bitcoin saw a decline today, other cryptocurrency have also seen a decline today. Ethereum, for example, has dropped by 5% to $3,097.4.

Other Altcoins also suffered bigger losses. Both XRP and Polkadot (DOT) have dropped by over 9% in the last 24 hours. Respectively, Solana (SOL) also dropped by 8% to trade at $106.15.

Due in large part to this sudden downtrend, market cap valuations have dropped by around 3% from over $2 trillion to $1. 943 trillion.

Bitcoin Investors are optimistic that the coin will soon resume its bullish trend.