The cryptocurrency, which It has been experiencing a sharp decline, not registering a value below $20,000 since December 16, 2020, when its price stood at $19,440.
Bitcoin price has fallen this Saturday 7.21% compared to the previous day, standing at 19,353 dollars at 07:09 GMT, according to the latest data from the portal CoinDesk.
The cryptocurrency, which has been experiencing a sharp decline, has not registered a value below 20,000 dollars since on December 16, 2020, when its price stood at $19,440.
According to Bloomberg, this fall shows the serious and growing concern within the digital currency industry, in a context in which several of the companies in that market have recently cut their templates.
“The growing fears of recession are paralyzing the appetite for risky assets and that makes crypto traders cautious about buying bitcoin at these lows,” said Edward Moya, senior analyst at market broker Oanda.
The recent decision of the US Federal Reserve to raise short-term interest rates by 0.75 percentage points, amid its struggle to curb the historical rebound in the inflation, you have created a p environment erjudicial for risky assets with very high volatility, such as cryptocurrencies.
Given this scenario, the American cryptocurrency exchange platform Coinbase announced on Tuesday that it will reduce its team due to current economic conditions, as will BlockFi, a smaller platform. However, the digital currency market began to fall to late last year as fears grew that The Federal Reserve will increase interest rates. Bitcoin saw a roughly 70% drop from its all-time high in November.
It is worth noting that the decrease in the value of cryptocurrencies is also caused by the announcement of the main US cryptocurrency lending company, Celsius Network, to freeze its services this Monday due to “extreme market conditions”. Additionally, cryptocurrency hedge fund Three Arrows Capital suffered heavy losses and said it was considering asset sales or a bailout.
Bloomberg analyst Mike McGlone believes that bitcoin is likely to find a resistance right now and managed to stay close to $20,000 , despite the disappointing forecasts. It can “build a base around $20,000, like it did between 2018 and 2019 at around $5,000, and close to $300 in 2014 and 2015,” he said.