You are currently viewing Bitcoin loses $ 40,000 and falls to September lows after Fed plan

The bitcoin does not raise its head at this beginning of the course. The largest cryptocurrency loses, at this time, $ 40,000 after dropping close to 5% and falls to the lows of September 2021, with a market capitalization of around $ 755,000 million. Does it after reap his fifth decline in six days and record his worst start of the course ever since it became the digital alternative to fiat money.

The latest falls are motivated by the new roadmap of the US Federal Reserve (Fed), which will probably reduce its liquidity injections and raise interest rates earlier. Thus, the market discounts that the body chaired by Janet Yellen the price of money rises in March, when they previously forecast in May, which has led to strong bond surges and harsh punishment for tech companies.

In addition, the price of bitcoin could suffer a greater corrective. Jay Hatfield, CEO of Infrastructure Capital Advisors, highlighted that “bitcoin could end this year below $ 22,000“According to Bloomberg.” The tightening of Fed policy affects not only rates, but also the risk premium on assets, as the Fed withdraws funds from capital markets. Riskier investments, such as cryptocurrencies, are disproportionately affected relative to the rest of the market, as they are twice as volatile. ”

What do cryptocurrencies have to do with the crisis in Kazakhstan?

Guillermo Cid Alicia alamillos

For her part, Noelle Acheson, head of Market Outlook at Genesis Global Trading, highlighted after the bitcoin correction that “appears to be more driven by short-term cryptocurrency traders than by long-term investors. ”

The prospects are not rosy and the bitcoin does not stand as one of the great bastions against inflation, as claimed by the great supporters of cryptocurrencies. In addition, banks such as Goldman Sachs have also revised up their forecasts for the Fed and forecast four rate hikes compared to the three they previously expected, penalizing digital currencies.

The sharp drop in the trading price of bitcoin is the dominant trend in the market. The price of ethereum drops more than 3% and the market capitalization of all digital currencies drops more than 3%, to 1.89 trillion dollars, far from the 2.19 trillion with which it fired in 2021.

Disclaimer: If you need to update/edit/remove this news or article then please contact our support team Learn more

Then24

The News 24 is the place where you get news about the World. we cover almost every topic so that you don’t need to find other sites.

Leave a Reply