Why Bitcoin touched its lowest value in the last three months on Monday

The Bitcoin (BTC) touched this week its lowest level in the last three months. The drop was in the same direction as most of the major cryptocurrencies in the market. The BTC traded around $18,800. Other alternatives, like ethereum (ETH), accumulated declines of up to 8.4 percent and were offered to $1,400according to CoinMarketCap.

Like the general trend of recent months, this Monday’s crash responds to the pessimism that exists in international stock markets due to the possibility that the US Federal Reserve (FED) will continue to tighten its monetary policy.

The expectations are set on the meetings that the FED will hold this Tuesday Y Wednesday to run a further increase in your interest rates. The objective of the monetary entity is to cool demand in a context in which inflation reached 8.3 percent per year in August.

An announcement of a new rise in its reference interest rates is expected during the FED meeting. The market predicts that it will be 75 basis pointsthe third in a row in that range and which would take the rate to unprecedented levels since the 2008 financial crisis.

So far this year, the entity ordered a rise in reference interest rates of 25 percentage points in March, 50 in May, 75 in June and another 75 in July, taking it from levels close to zero to a range between 2.25 and 2.50 percent.

In this context, the BTC accumulate a drop of almost 60 percent so far this year. The current data is at values ​​similar to those recorded in mid-June, when the market responded abruptly after the collapse of Celsius.

However, to the optimism of investors, according to information from CoinMarketCap, the BTC price rose 2 percent during this Tuesday. Thus, it left its price in the range of $19,300. For its part, ETH was also up 2.9 percent in the last 24 hours.

This slight rebound is not enough: on a weekly basis, BTC continues its negative streak with a drop of 15 percentwhile ETH does a 22 percent below its price last week.

Source: Pagina12

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Varun Kumar

Varun Kumar is a freelance writer working on news website. He contributes to Our Blog and more. Wise also works in higher ed sustainability and previously in stream restoration. He loves running, trees and hanging out with her family.

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